Weight  of  Machine,  3.500  Pounds.   Price,  $1,200. 


£3 

*-  ac 


As  can  be  seen  by  the  cut.  we  run  the  saw  close  up  between  the  rolls.  We  hold  the  lumber  BO 
firm  and  rigid  that  we  are  able  to  make  six  pieces  from  an  inch  Doard.  The  whole  feed-works  are 
moved  across  the  machine  by  the  hand -wheel  on  the  side,  if  desired  to  slab  from  the  side  of  stuff 
and  use  the  self-centering  arrangement.  The  manner  in  which  we  connect  our  roll-stands  to  the 
•sides,  allows  them  to  work  perfectly  free  at  all  times,  and  with  all  our  improvements  combined,  we 
claim  to  be  able  to  do  a  larger  variety  of  work  with  our  Re-Sawing  Machine  than  can  be  done  w'th 
any  other,  and  one-third  more  in  the  same  time.  Another  yery  important  point  we  claim  for  our 
machine,  is  that  any  man  can  run  It  who  can  file  and  keep  a  saw  in  good  order.  We  have  several 
•of  these  machines  in  operation,  which  give  the  very  best  satisfaction,  and  we  are  prepared  to  put 
them  in  on  trial.  Parties  ordering  machines  will  please  state  what  kind  of  work  they  are  requi.ed 
to  do;  if  picture-back  work  altogether,  sawed  from  thick  lumber,  we  can  give  a  saw  with  the  ma- 
chine adapted  to  that  class  of  work— lighter  guage.  Our  regular  guage  will  take  less  than  %  inch 
kerf. 

Driving  pulley  on  saw  18  in.  diameter.  9  in.  face,  and  should  run  650  revolutions  per  minute.  We 
•can  furnish  counter-shaft  -when  desired  with  these  machines. 


CHARLES  E.  CULVER. 


GEORGE  N.  CULVER. 


GF 


Nos.  1 

Br 


Have  un 
er  conduct 

In  solicit 
and  best  en 


L  I  E> 

OF  THE 
UN1VLRSITY 
OF    ILLINOIS 

PRLSENTLD  BY 

tiewton  M.   Harris 
1941 

I 


S,  &c. 

;,  Chicago. 

raukee. 


;rs  and  the  prop- 


rsonal  attention 
nts. 


Chicago,  Milwaukee  or  the  Eastern  Markets. 

Correspondence    should    be    Addressed  to    Chicago* 


The  person  charging  this  material  is  re- 
sponsible for  its  return  on  or  before  the 
Latest  Date  stamped  below. 

Theft,  mutilation,  and  underlining  of  books 
are  reasons  for  disciplinary  action  and  may 
result  in  dismissal  from  the  University. 

University  of  Illinois  Library 


E.  H.  CHANDLER. 


MAR  2    19GS 


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D 


GRAIN,  ] 


SICOM: 

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HOME  OFFI 


Eft  OF  C0« 


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L161— O-1096 


O 

Provisions  for  Future  Delivery  Bought  and     O 
n  Margins. 


A.  C.  Brackebush  &  Go, 

MINERS  &  SHIPPERS, 


al  and  G 


We  RECEIVE  DAILY,  DIRECT  FROM  MINES,  via  ALL  RAIL,  the 
following  WELL  KNOWN  COALS  ;  on  which  we  are  prepared  to 
furnish  SPECIAL  FIGURE?  to  MANUFACTURERS  AND  DEALERS. 

Anthracite  Coals, 

A.   PARDEE    &    GO'S.,   LEHIGH   LUMP. 

The  Susquehanna  Coal  Go's 

W1LKESBARRE  and  PITTSTON  COAL. 

9IZESS  a LARGE    EGG-SMALL,    EGG-RANGE— NO.4-CHESTNUT.. 

Bituminous  Coals, 

YOUGHIOGHENY  GAS  COAL,  INDIANA  BLOCK  COAL. 

BUCKEYE  CANNEL,  '»  INI»IANA  «IA>T  " 

PITTSBURGH,  "        BRIAR  HILL,  STRAITSVILLE  '< 

Connellsville  and  Pittsburgh  Coke, 

Cumberland  lj  Morris  Run,  Blossburgh,  Smithing 
^^^  Coals 


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(DANVILLE    ROUTE.) 
By  Joint  arrangements  of 
CHICAGO  &  EASTERN  ILLINOIS  R.  R.  CO. 

ROBT.  Foils  VTH.  Oeneral  Freight  Agent,  Chicago. 
i:V  \\S\  IM.K,  -|  ICKI1K  HAUTE  &  CHICAGO  R.R.  CO. 

J.  R.  KENDALL,  General  Freight  Agent,  Terre  Haute. 
EVANSVILLE  A   TI.KKi:  HAITI:  R.R.  CO. 

I-:.  S.  BABCOCK,  .Ir.  General  Freight  Agent,  Evansville. 
ST.  LOUIS  A:  SOUTH-EASTERN  RR.  CO. 

C.  H.  CROSBY,  General  Freight  Agent,  St.  Louis 
f 

S  HOW  TEST  A  LI,   KAIL 


FAST 

Through.    "Without    Transhipment 

On   Express    rJTiirie. 


— )  T  O  ( — 

Terre  Haute,  Ind. 
Nashville,  Tenn. 


Indianapolis,  Ind. 

Chattanooga,  Tenn. 

Jacksonville,  Fla. 


St.  Louis,  Mo. 
Evansville,  Ind. 
Atlanta,  Georgia. 

And  all  points  SOUTH.  SOUTH-EAST,  and  SOUTH-WEST. 

Mark  and  Consign  Goods  Via 
SOTJTJHEIRIV        r>ESJPATCH, 

AND  FOR 

BILLS  LADING  AND  FURTHER  INFORMATION  APPLY  TO 

W.  H.  KNIGHT,  Agent. 

66  LA  SALL'B  ST.,  CHICAGO- 
ROBT.  FORSYTH. 

General  Freight  Agent,  123  Dearborn  St.,  Chicago. 

Passengers  should  remember  that  this  ia  the  Shortest  and  Best  Line  between 

CHICAGO,  and  all  Points  South  and  Southeast. 

That  it  is  the  Popular  and  Reliable  Line  to  MONTGOMERY,  MOBILE,  1NEW 

ORLEANS,  and  all  parts  ot  MlSSISSIPPf,  LOUISIANA, 

ARKANSAS  and  TEXAS. 

0.  8.  LYVORD,  Geril  Superintendent.  A.  8.DUNHW,  Gen'l  Ticket  Agent 

WoodrntF Parlor  and  Rotunda  Sleeping  Cart  on  all  .v/'i-///  Traint. 


ESTABLISHED    1855. 


George  M.  How  &  Co. 

COMMISSION    MERCHANTS, 

FOR  THE  PURCHASE  AND  SALE  OF 

Grain,  Provisions,  Seeds,  &c 

153    Monroe  Street, 


Prompt  Personal  attention  given  to  all  business   entrusted  to   our 
care. 

CORRESPONDENCE  SOLICITED. 


Albert  Morse.  jas.  L.  Ward. 

y 

Morse,  Ward  &  Co. 

> 

Commission  Merchants, 

151    MONROE    STREET, 


Advances  made  on  Consignments  of 
Grrain,  Provisional  &  Seeds, 


FOR  SALE  IN  THIS  MARKET. 


References  : 

First  National  Bank,  Chicago,  Messrs.  Flint,  Thompson  &  Co.,  Chicago. 


SHIPPERS  OF  LIVE  STOCK 

(  FROM  ) 

MISSOURI,  IOWA,  DAKOTA,  INDIAN  TERRITORY,  TEXAS, 
NEW  MEXICO,  ILLINOIS  AND  INDIANA, 

Will  find  that  the  Route,  via, 

ILLINOIS  CENTRAL  R.  R. 

Offers  the  fullest  facilities  for  the  Safe  and  Rapid 

Transportation    of   Live    Stock. 


Commodious  Feeding  Yards  at  Cairo  and  East  St.  Louis, 

Have  been  fitted  up,  which  will  enable  Drovers 

TO  FEED,  WATER  AND  REST  THEIR  STOCK, 

AT  REASONABLE  RATES, 
And  after  a  short  run  unload  it  at  the 

UNION   STOCK  YARDS,  CHICAGO. 

In  as  good  condition  as  when  loaded  at  the  point  of  Shipment. 

Joseph  F.  Tucker,  Horace  Tucker, 

1  raffle  Manager,  Chicago.  General  Freight  Agent,  Chicago. 

James  Ramsey,  Thomas  Tustin, 

Union  Stock  Yards,  Chicago.  Agent,  Chicago. 


CHARLES  J.    GILBERT. 


CHARLES  W.    BREGA 


& 


,  Provisions  &  Seeds, 


166 


CORRESPONDENCE  SOLICITED. 


CHICAGO 

BURLINGTON  &  QUINCY 

RAILROAD. 


SHIPPERS  OF  LIVE  STOCK, 

FROM 

MISSOURI,  KANSAS,  INDIAN  TERRITORY,  NEW  MEXICO, 
TEXAS,   IOWA  AND   NEBRASKA. 

Should  bear  in  mind  that  the  Route,  via. 


Afforls  Greater  Facilities  for  the  Safe  and  Qnick  Transportation  of  Live  Stock, 

Than  are  offered  by  any  other  line. 


At  Quincy  and  Galesburg,  Illinois, 
And  at  Creston  and  Burlington,  Iowa, 

Enable  Drovers  to  feed,  water  and  rest  their  Stock,  then,  after  a  SHORT  RUN,  to 
unload  their  Cattle  or  Hogs  at  the 

UNION    STOCK   YARDS   IN    CHICAGO. 

In  good  condition  for  Market. 


Drovers'  Cars  fitted  with  Sleeping  Berths  for  the  comfort  and  convenience  of  men 
in  charge  of  block,  are  attached  to  all  Stock  Trains. 


C .  If*.  Smith,  Traffic  Manager,  Chicago.          G.  t>.  Carman,  Div.  Fr't  Ag't,  Eock  Island,  LI. 
*.'.   S*.  Riplcy,  Gen.  Fr't  Ag't,  Chicago.        Tito*.  .Jfi Her,  "  Burlington,  Ilj . 

Paul  .Jlortou,  Afs't  G.  F.  \.        "  Jt.  Jfg.  .Jli let,  Quincy,  1:1. 

Fred.  IMareey,  Gen'l  Western  *Vt  Ag'i,  Leavonworth,  Kansas. 


LIGHT  EXPENSES  MAKE  Low 

PRICES, 


MANUFACTURERS  &  IMPORTERS, 

Offer  Diamonds,  Pearls,  Cameos,  Fine  Watch- 

es,   Guard    Chains,    Vest    Chains,    Neck 

Chains,  Lockets,  Pendants,  Charms, 

Bracelets,    Pins,    Ear    Rings, 

Sleeve      Buttons,       Seal 

Rings,  Engagement 

and    Wedding 

Rings, 

Wedding  &  Family  Silver, 

TEA  SETS,  WATER  SETS,   WAITERS,  CAKE  BASKETS, 
BUTTER.  DISHES,  BERRY  DISHES,  EPERGNES, 
TURREENS,  ORNAMENTAL  VASES,  FINE 
TABLE      CUTLERY,      OPERA 

GLASSES,  SPECTACLES, 

--  )  &c.  (__ 

At  Lower  Prices  than  any  House  in  the  trade,  because  their  expen- 
ses are  much  lighter  and  their  stock  is  all  new  and.  bought  for 
cash.  Every  article  guaranteed  exactly  as  represented. 

66  STATE  STREET,  Cor.  Randolph. 


W.W.  KIMBALL, 


WHOLESALE    DEALER    IN 


PIANOS  ®  ORGANS, 

Cor.  State  and  Adams  Streets, 
CHICAGO. 


SMITH'S 

AMERICAN 

ORGANS, 

New  Styles! 
New  Catalogue! 
New  Prices! 

300  Organs  now  in  store.  All 
orders  from  dealers  filled  with 
dispatch'  Also 

GRAND,  SQUARE  AND 

Upright  Pianos. 

W.  W.  KIMBALL 

State  and  Adams  Sts, 
CHICAGO, 

.V.   B.     .If flits     IIV/ii/r./. 


J-OCKLAND  MILLS,  TllALTO  /VllLLS. 


Co. 


c\w<\  lie/cxVets 


0 


-)  AND  DEALERS  IN  (- 

Oysters  and  Fish, 

O  BALTIMORE,  M3D.  O 

OFFICE,  No.  40  STATE  STREET,  CHICAGO. 


We  have  always  on  hand  in  season,  the  celebrated  brand  of 

BOSS  OYSTERS. 

Our  prices  are  always  as  low  as  any  other  responsible  house  in 
the    trade — special   attention  given   to    the   Fresh  Fish  trade. 
<Z^  OFtDEFtS    S 01*1  CI TED.  ^^ 


Louisiana  Route. 

kqd££ 


City 


SHORT    LINE, 

-  VIA  - 

CHICAGO  &  ALTON  R.  R. 


AND 


ST.  LOUIS,  KANSAS  CITY  AND  NORTHERN  R.  R. 


— AND — 

Passing  through  MEXICO,  Mo.,  LOUISIANA,  Mo  .  JACKSONVILLE.  BLOOM- 
INGTON  and  NORMAL.     At  th«  latter  n^int,  124  miles  from  CHICAGO, 
are  new  nnd  extensive  STOCK  YARDS,  COVERING  TWENTY 
ACRES,  thoroughly  drained,  and  with  clear  spring  water  car- 
ried in  pipes  to  every  pen.    Yards  of  ecjual  extent  have 

also  been  built  at  Louisiana,  273  miles  from  Chi- 
cago, and  217  miles  from  Kansas  City,  making  easy  runs 
for  Stock,  bringing  it  to  market  in  as  good  condition  as  when 
loaded  at  point  of  shipment. 

LUXURIOUS    DROVERS'    SLEEPING-    CARS, 

Fitted  up  with  the  comforts  and  conveniences  of  a  Pullmnn  Palace  Car,  attached 

to  Stock  Trains  on  this  favorite  route.    SLEEPING  BERTHS  FREE 

to  Drovers  in  Charge  of  Stock. 


4(1  11  H       I 'I. HI.. 

Rates  of  Freight  ahcays  as  Low  as  by  any  other  Route. 

THE  GREAT  IRON  BRIDGE  AT  LOUISIANA  IS  COMPLETED. 

NO    DRIVING    OB    FERRIES    BY    THIS    L.INE. 

CHEAP  FEED  AID  ABUNDANCE  OF  CLEAR  WATER. 


By  this  route,  shippers  from  MISSOURI,  TEXAS,  KANSAS,  the  SOUTH-WEST, 
St.  Louis,  Springfield,  Jacksonville  nnd  other  point?,  are  enabled  to  avail  them- 
selves of  the  CHICAGO  MARKET,  in  transit  to  the  East  without  addi- 
tional cost. 
J.  c.  JtrcJirwTi,i,Ejr,  JAMES  SMITH, 

General  Manager,  Chicago.  Gen.  Freight  Agent,  Chicago. 

w.  or.   isi.i.it.  s.i.jn  i  i.  sjfffva, 

Gen.  Western  Agent,  Kansas  City.  General  Agent,  Ft.  Louis. 

R.  P.   TAWJSER,  Jr.,  J>.  J»I*OW»K, 

•      Agent  Kansas  City.  Stock  Agent,  St.  Louis, 


UNION  HORSE  NAIL  CO. 


MANUFACTURERS    OF   THE 


STAR  HORSE  MILS, 

OFFICE  AND  FACTORY, 


ASHLAND  AVE.,  NEAR  22  ST. 
CHICAGO. 


Our  Nails  are  made  with 
LARGE  and   SMALL  HEAD  S 

FROM  THE  BEST  NORWAY  IRON,  AND  ARE  POINTED 
FINISHED  AND  BLUED,  READY  FOR  USE. 


SEND  FOR    SAMPLE   CARD. 


SILVER  MEDAL  AWARDED  AT  ST.  LOUIS  FAIR,  18'5 


THE  OLD  CHAJIBEK  OF  COMMERCE. 
DESTROYED     BY     FIRE     OCTOBER     9TH,     1871. 


THE    NEW    CHAMBER    OF    COMMERCE. 
ERECTED    1872. 


1O9 


oo 


OO 


oo 


00 


00 


TO  THE    PUBLIC. 

Heads  of  Families,  Housekeepers,  Hotels,  Restaurants,  and 
all  who  are  interested  in  finding  out  where  they  can  get  the  bes 
value  for  their  money,  both  in  quality  and  quantity,  are  invited  to 
call  and  see  my  immense  stocks  of  Foreign  and  Domestic  Ca-ro- 
ceries,  Wines,  Liquors  and  Cigars. 

Respectfully, 
C.  H.  SLACK,  Wholesale  &  Ketail  Grocer  &  Wine  Merchant. 

1O9  East  Madison  Street,  Chicago. 
Branch— 21O  &  212  North  Clark  Street,  (Cor.  Superior.) 


LARGEST  SURGICAL  INSTRUMENT  HOUSE  IN  THE  WEST. 

SHARP  &  SMITH, 

SURGEONS'  INSTRUMENTS  and  PHYSICIAN'S  GOODS, 


Manufacturers  and  Importers  of  all  kinds  of  Sur- 
geon's Instruments  and   Appliances  for  the 
Mechanical  Treatment  of  all  Deformities, 
Debilities  and    Deficiencies  of  the 
Human  Frame. 

Artificial   Arms    and    Legs, 

Galvanic  Batteries,          Faradic  Batteries, 
Electrodes,  Bow  Leg  Braces, 

Spine  Braces,  Club  Foot  Shoes, 

Saddle  Bags,  Medicine  Chests, 

Steam  and  Hand  Atomizers,       Trusses,  Crutches, 
Elastic  Bandages,  Anatomical  Models, 

Shoulder  Braces,  Rubber  Pillows, 

Fever  Thermometers.  Rubber  Urinals, 

Rubber  Hot  Water  Bottles, 
Rubber  Chair  Cushions, 

Rubber  Bed  Sore  Cushions, 
Skeletons,  Splints, 

Skulls,  Hypodermic  Syringes. 

Invalid  Wheel  Chairs, 

Surgeons  Operating  Chairs. 

Abdominal  Supporters- 


ELASTIC  STOCKINGS 

for  Enlarged  Veins, 
Swelled  Limbs  and  weak 

Joints 
a  specialty. 


Instruments  and  Batteries  Repaired, 

100  Randolph  Street, 

CHICAGO. 
Between  Clark  and  Dearborn. 


S,  D.  KIMBARK, 

Iron,  Steel,  Nails, 

CA.RRIA.OE 


AND 


HEAVY  HARDWARE, 

Carriage  Trimmings  &  Wood  Material, 

80,  82  &  84  MICHIGAN  AVE, 

(^CHICAGO. 


THE 


LAWS  OF  TRADE, 


AS   ADOPTED  BY  THE   BOARD  OP   TRADE,    THE   UNION   STOCK    YARDS  AND 
TRANSIT   COMPANY,   THE   LUMBERMAN'S   EXCHANGE   AND  THE 
PRODUCE  EXCHANGE   OF   THE   CITY   OF  CHICAGO — TO- 
GETHER  WITH   SOME   PRACTICAL   HINTS  IN 
SHIPPING  &C-,  &C. 


BY 


CHICAGO : 

PITKIN  &  CRUVEK,  PRINTERS, 
REAR  119  CLARK  STREET. 

1878. 


Hoisting  Machinery      HORIZONTAL  AND  UPRIGHT  WATER  ENGINES. 

Exclusively. 


^Proprietor  &  Jlfanvjacturer  of 


atent 


(Steam,  Hydraulic  and  Hand  Power,) 

Passenger  and  Freight  Elevators,  and 

of  Lifting  Machines  Built  and  Repaired, 

Reedy's  Latest 

Improvements    attached      83,     85     87     and     91      ILLINuIS     ST., 
to  old  Machines. 


M.  C.  BULLOCK, 

*~£r*  Manufacturer  of  ^^-> 

DIAMOND-POINTED  ROCK  DRILLS. 


For  Prospecting,  Mining,  Tunneling,  Quarry- 
Ing,  etc.,  giving  a  Core  tlic  Entire 
Length  of  Bore. 


SOLE  AGKNT  FOR 

HARRIS'  DOUBLE-ACTING  PLUNGER 


Anti-friction  Metal  for  Journal  Bearings, 

The  only  genuine  PJumbaso  in  the  market.      Send  for  price 
and  test  Metal  or  Bearings. 

"Waters'  Perfect"  Engine  Governor. 

Most  durable  and  ecomical  Governor  ever  invented,  and  has 

never  failed  to  control  any  engine,  even 

after  all  others  had  failed, 


DEALER  IN   ALL    KINU8  OP 

WOOD  AND  IRON    WORKING  MACHINERY. 

Write  for  what  you  want.     All  inquiries  cheerlully  answered. 

Warerooms:  31  &  33  S.  Canal  St.,  Chicago. 


PREFACE, 


The  Compiler  and  Publisher  of  this  work  has  been  led  so  to  do  from 
the  apprehension  of  the  need  of  such  a  hand-book  by  the  special  branches 
of  trade  to  which  its  pages  are  devoted,  and  the  commercial  community 
generally.  He  has  been  induced  to  undertake  the  task  of  its  preparation 
at  the  suggestion  and  solicitation  of  prominent  gentlemen  connected  with 
the  several  interests  herein  set  forth,  and  has  spared  no  pains  to  render 
the  volume  accurate  in  every  particular,  as  well  as  of  appreciable  value 
as  a  convenient  work  of  reference. 

The  title  chosen  for  the  compilation  seems  to  the  author  to  be  both 
appropriate  and  comprehensive — "  The  Laws  of  Trade,  as  adopted  by  the 
Board  of  Trade,  the  Union  Stock  Yards  and  Transit  Company,  the  Lum- 
berman's Exchange,  and  the  Produce  Exchange."  It  has  been  the  com- 
piler's aim  to  collate  every  important  fact  and  statistic,  with  reminiscences 
of  early  days,  which  should  not  be  permitted  to  slumber  in  forgetfulness, 
relating  to  these  very  prominent  business  interests  of  Chicago  and  the 
Northwest;  and  in  his  labors  to  this  end  he  has  been  ably  and  cheerfully 
aided  by  leading  merchants  in  all  the  lines  indicated,  who  have  commu- 
nicated much  interesting  and  useful  information  on  the  subjects  treated 
upon,  for  which  favors  he  feels  duly  grateful. 

The  advantages  of  such  a  work  as  this  are  so  apparent  as  to  render 
quite  unnecessary  any  extended  elucidation  thereof.  While  it  cannot  but 
prove  in  many  ways  of  positive  value  to  the  local  trade,  it  is  likewise  cal- 
culated to  benefit  producers  and  dealers  throughout  the  West  and  North- 
west, who  will  find  in  its  pages  such  reliable  information  as  will  show 
them  the  best  market  for  their  products  and  the  most  favorable  point  at 
which  to  make  their  purchases.  Some  advertisements  of  first-class  repre- 
sentative business  houses  appear  herewith,  to  which  the  attention  of  the 
public  is  invited.  They  offer  the  best  of  inducements  to  the  trade  at 
large,  and  all  having  dealings  with  them  have  the  assurance  of  the  most 
satisfactory  results  accruing  therefrom.  With  these  brief  introductory 
remarks,  this  volume  is  respectfully  submitted  to  the  mercantile  and  agri- 
cultural community,  in  the  confident  hope  that  it  may  meet  the  views 
and  answer  the  requirements  of  all  whom  it  may  concern. 


George  Bohner  &  Company, 


JOBBERS  OF 


BOHNER'S 
Double  Extens'n  Library  Lamp     GLASSWARE,  &C ., 

MANUFACTURERS  OP 

Boliner's  Double  Extension  Library 

Lamp  &  Referable  Brackets, 

and  other  desirable  new  goods.  The 
Library  Lamp  and  Reversible  Brack- 
ets are  far  superior  to  any  other  in  the 
market,  and  1511  a  long,  felt  want.  Our 
goods  are  of  the  best  quality,  assort- 
ment the  largest,  and  prices  lower  than 
any  other  house  in  the  West. 

GEORGE  BOHNER  &  CO., 

33    &    35    WABASH    AVENUE, 

CHICAGO,  ILL. 

BOHNER'S  Improved  Double  Ex- 
tension Library  Lamps  for  Parlor,  Din- 
.ing  or  Sitting  Room,  Offices,  etc.  The 
best  One  Light  Pendant  in  the  country. 
Length  Three  Feet,  EXTENDS  TO 
SEVEN. 

The  only  Lamp  that  has  this  Exten- 
sion and  Solid  Cup  to  prevent  Dripping. 

Extended  for  use  over  table  or  desk. 
Length,  three  feet.  Lamp  can  be  lowered 
from  the  shade  for  lighting,  filling,  &c. 


CONTENTS. 


Page 

Chamber  of  Commerce,                           .....  1 

Board   of  Trade,  1 

Board  of  Trade — future  deliveries,         -  -24 

Puts  and  calls,     -  29 
Option  trading,       -                                      .......32 

Margins  on  time  contracts,  36 

Remarks  concerning  option  trading,                  -  -       37 

Expenses — buying  and  shipping,                    -  -           40 

Legal  opinion  on  option  contracts,           -  41 

The  anti-corner  rule,  ...  55 

Caution  to  short  sellers,                                             -  59 

Deals  of  the  curbstone  brokers,  -  64 

Rules  governing  inspection  of  grain,      -         -  64 

Weights,    -  69 

Rates  of  inspection,        -  70 

Weighmaster's  tariff  of  prices,  70 

Regulations  governing  the  inspection  of  flour,  -        71 

Regulations  for  the  inspection  of  hay,                   -  75 

Regulations  for  the  inspection  of  provisions,  •  •                         76 

Requirements  as  to  cut  and  packing  hog  products,      -  78 

Union  Stock  Yards  and  Transit  Co.,       -                   -  85 

Union  Stock  Yard — How  business  is  done  there,  90 

Receipts  and  sales  of  live  stock,              -  -                  t'6 

Live  stock  commission  merchants,                                  -  97 

Packing  houses,                                          -  100 

Transit  House,                                                                    -  -            103 

*  Union  Stock  Yards  National  Bank,     -  -       105 

*  Officers  of  the  Lumberman's  Exchange,  106 
Receipts  and  shipment  of  lumber  from  1847  to  1877,  inclusive,       -      108 
The  Lumberman's  Exchange  and  Lumber  trade,  110 
Lumber  inspection,  -               113 


CONTENTS 

Go  s  &  Phillips' Manufacturing  Co.,  -                                              118 

The  officers  of  the  Produce  Exchange,  -     110 

The  Produce  Exchange,  120 

The  Fruit  and  Berry  Ordinance,  -    123 

Game  Laws  of  Illinois.    *    -  -                                                         126 

Instructions  for  packing  butter,       -  -    127 

Advice  to  shippers  of  butter,  128 

Roll  butter,  129* 

Tare  on  butter  packages,  -                                                         130 

Instructions  to  shippers,  -    130 

Game  for  shipment,  131 

How  to  kill  and  ship  poultry,           -  -     131 

To  shippers  of  cheese,  -                                                       133 

To  shippers  of  vegetables,       -  -    133 

Instructions  for  preserving  eggs,  -                   133 

Instructions  for  packing  eggs,  -    135 

What  constitutes  a  car  load,        T  137 

Commission  charges  for  selling,       -  -                                               -    138 

Shipping  perishable  merchandise,  -         -                                               140 

Decisions  in  admiralty,      -  -                  -    143 


STANDARD  SCALES 


Design, 


SUPERIOR  TO  ALL  OTHERS  IN 

Construction, 

Quality  of  'Workmanship, 

and  Materials. 

ACCURACY 


Awarded  the   Highest  Prizes  at   all  Worlds'   Fairs.     Every  Scale, 
Warranted  STRONG,  DURABLE  and  ACCURATE. 


FAIRBANKS 


'•£ 


FAIRBANKS  &  CO.,  St.  Louis  &  Indianapolis, 


CHAMBER  OF  COMMERCE. 


The  stately,  massive  and  beautiful  Chamber  of  Commerce  building, 
standing  on  the  corner  of  Washington  and  La  Salle  streets,  occupies  the 
same  site  upon  which  was  erected  the  structure  that  was  dedicated  to 
business  purposes,  with  imposing  and  memorable  ceremonies,  on  the  30th 
and  31st  of  August,  1865,  and  which  was  destroyed  by  fire  in  the  great 
conflagration  that  raged  with  irresistible  fury  in  the  business  center  of 
Chicago  in  October,  1871;  and  with  the  energy  and  go-a-headitiveness, 
which  are  the  characteristics  of  this  people,  the  present  magnificent 
building  was  completed  and  dedicated  with  appropriate  and  impressive 
ceremonies  on  the  9th  day  of  October,  1872,  just  one  year  from  the  date 
of  the  destruction  of  the  edifice  formerly  occupied  by  them  and  formally 
taken  possession  of  by  the  commercial. organization  for  whose  use  it  was 
erected.  The  building  is  three  stories  in  height,  constructed  in  the  most 
substantial  manner  of  Ohio  sand  stone.  In  architectural  style,  it  may  be 
called  the  Composite,  uniting  the  massive  with  the  ornate.  It  has  a 
frontage  on  Washington  street  of  93  feet  by  181£  feet  on  La  Salle  street. 
The  basement  story  is  occupied  by  banking,  insurance  and  commission 
houses  and  for  other  business  purposes;  the  same  may  be  said  of  the 
second  story.  On  the  third  story,  which  is  made  accessible  by  broad  iron 
stairways  and  a  powerful  elevator,  are  the  exclusive  apartments  of  the 

BOARD  OF  TRADE. 

The  main  room,  or  Exchange  Hall,  is  142  feet  in  length  by  87  feet  in 
width,  with  a  ceiling  45  feet  in  height.  The  President's  rostrum  is  situ- 
ated at  the  north  end,  and  at  the  south  end,  over  the  door  of  entrance,  is 
the  visitors'  balcony.  The  ceiling  and  the  walls  are  beautifully  and 


2  LAWS  OF  TRADE. 

appropriately  frescoed,  making  it  the  most  imposing  and  elegant  hall  in 
the  country  for  the  purposes  for  \vhioh  it,  is  designed.  At  the  south  end 
of  the  floor,  separate  from  the  Exchange  Hall,  are  situated  the  offices  of 
the  Secretary  and  the  rooms  for  committee  purposes.  The  building  is  a 
conspicuous  ornament  to  the  city,  comparing  favorably  in  its  architectural 
beauty  and  grandeur  with  the  innumerable  business  palaces  and  other 
magnificent  structures  for  which  Chicago  is  famous,  while  it  reflects  the 
highest  credit  upon  the  organization  to  which  it  belongs.  Within  the 
walls  of  this  elegant  structure  the  members  of  the  Board  of  Trade 
assemble  in  grand  array  for  business  purposes,  "and  to  them  as  a  body 
of  representative  merchants,  who  have  contributed  in  a  greater  measure 
than  any  other,  belongs  the  credit  of  giving  to  Chicago  her  world  re- 
nowned prestige  for  business  sagacity,  and  of  her  being  a  driving,  won- 
derfully enterprising  and  energetic  community;"  and  from  the  very  in- 
significant inception  of  this  association  in  1848,  to  which  we  refer  else- 
where, it  has  become  formidable  in  numbers  and  wields  an  influence  sec- 
ond to  no  other  organization  in  the  country.  Its  membership  has  reach- 
ed the  large  number  of  eighteen  hundred  and  thirty-one  names, 
which  is  twelve  less  than  there  were  one  year  ago.  The  cost  of  a  mem- 
bership is  one  thousand  dollars  and  the  dues  throughout  a  year  are  about 
twenty  dollars — though  the  membership  is  transferable  and  is.  often 
transferred  when  a  member  retires  from  the  Board,  or  for  other  causes  is 
sold  for  a  less  amount.  The  amount  of  business  transacted  by 
these  merchants  and  speculators,  is,  as  we  might  say,  almost  fabulous. 

Charles  Randolph",  Esq.,  the  able  and  esteemed  Secretary  of  the 
Board,  informs  us  that  the  actual  receipts  and  shipments  of  merchandise 
which  passed  through  the  Board,  the  past  year,  reached  the  vast  amount 
of  two  hundred  and  eighteen  million  dollars;  but  it  should  be  remember- 
ed that  to  meet  the  demands  of  speculation,  which  is  always  rife  during 
'Change  hours,  that  this  same  merchandise  changes  hands,  how  often  it 
would  be  difficult  to  determine.  Here,  in  this  vast  assemblage,  meeting 
from  day  to  day,  are  gathered,  men  of  experience,  ripe  with  intelligence, 
keen-witted,  well  posted  on  all  public  affairs,  constantly  scanning  the 
political  horizon  of  this  country  and  Europe — quick  to  observe  the  small- 
est incident  happening  that  may  have  the  slightest  influence  upon  the 
market  one  way  or  the  other,  prepared  at  once  to  operate,  and  when  the 
opportune  moment  arrives  to  meet  the  views  of  one  side  and  also  the 
other — the  bulls  and  bears  array  themselves  in  factions,  the  one  to  sus- 
tain and  the  other  to  depress  the  market;  contending  with  relentless 


BOARD  OF  TRADE.  3 

pertinacity,  the  one  side  holding  the  vantage  ground  for  a  time  and  then 
the  other — and  thus  purchases  are  made  enormous  in  amount  and  almost 
countless  in  numbers.  Therefore,  it  ca.n  be  readily  observed  how  diffi- 
cult it  would  be  to  reach  any  approximate  idea  of  the  amount  of  busi- 
ness transacted  annually  on  the  Board.  But  if  it  could  be  ascertained 
no  doubt  the  figures  would  be  so  colossal  as  to  excite  our  special  won- 
der. As  evidence  of  its  importance  and  the  great  influence  the  Chicago 
Board  of  Trade  has  upon  all  the  markets  of  the  world,  we  quote  an  able 
writer,  who  says:  "The  movements  of  this  Board  have  always  been 
watched  with  interest  throughout  this  country  and  Europe;  its  dicta, 
concerning  markets,  have  swayed  the  commercial  centers  of  the  world. 
Depressions  of  its  business,  or  occasional  reverses  met  with  in  the  vicis- 
situdes of  its  transactions,  have  been  felt  at  every  mart  of  importance  in 
existence.1"  Such  is  a  brief  outline  of  this  powerful  organization,  and 
well  does  it  merit  all  that  may  be  written  in  its  behalf,  for  an  abler  body 
of  merchants  never  assembled,  and  amid  all  the  excitement  incident  to 
the  large  and  numerous  operations  in  which  they  engage  during  'Change 
hours,  their  equanimity  is  never  disturbed.  Their  good  humor  is  pro- 
verbial. Even  the  oldest  and  most  austere  and  dignified  among  them 
are  unable  to  withstand  the  amusement  afforded  by  the  jokes  and  sports 
of  which  the  younger  members  are  always  brimful  and  running  over. 
And  gathered  here,  there  are  many,  very  many  noble  and  generous  men 
who,  burdened  with  the  cares  attendant  upon  constant  strife  with  the 
business  world,  nevertheless  are  never  so  deeply  oppressed  that  their 
manly  and  generous  natures  are  not  always  alive  for  charitable  deeds  or 
any  good  work  or  philanthropic  enterprise  that  may  be  presented.  Let 
the  appeal  come  from  the  North,  the  South,  the  East  or  the  West,  they 
willingly  come  forward  and  respond  with  a  lordly  and  an  unsparing  hand, 
as  if  in  emulation  of  the  world's  benevolence  to  Chicago  when  she  laid 
prostrate  from  the  visitation  of  the  great  conflagration  of  October,  1871. 
But  as  it  is  our  purpose  in  this  work  to  show  the  steady  increase  and 
marvelous  growth  of  the  commercial  interests  herein  represented,  by  sta- 
tistics and  other  facts;  and  as  we  have,  in  introducing  our  subject,  brief- 
ly written  of  the  Board  of  Trade  of  to-day,  let  us  here  retrace  our  steps 
and  go  back  to  the  day  when  the  sagacious  merchants  of  that  period  fore- 
seeing the  future  greatness  of  Chicago  as  a  metropolitan  commercial 
center,  first  laid  the  foundation  of  this  potent  regulator  of  the  world's 
business  pulse  in  breadstuffs  and  provisions. 

In  seeking,  as  we  have,  with  earnest  efforts  to  reach  all  or  a  great 


4  LAWS  OF  TRADE. 

part  of  the  facts  which  make  the  history  of  the  early  days  of  the  Board 
of  Trade,  we  have  found  it  a  difficult  task,  and  there  does  not  appear  to 
be  anything  extant,  better  and  fuller  regarding  those  interesting  events 
— without  it  may  be  the  record  of  the  Board  now  in  the  possession  of 
Mr.  Secretary  Randolph — than  the  subjoined  historical  information 
which  we  extract  from  a  speech  delivered  by  the  late  Hon.  W.  F.  Cool- 
baugh,  on  the  occasion  of  the  inauguration  of  the  Chamber  of  Commerce 
building,  October  9th,  1872.  He  said:  "It  appears  that  the  first  organiza- 
tion of  the  Board  of  Trade  took  place  in  1848.  On  the  13th  of  March 
of  that  year  a  call  was  issued  for  a  meeting  of  the  business  men  of  the 
city  for  the  formation  of  a  board.  The  call  was  signed  by  the  follow- 
ing well  known  firms  to- wit: 

"Wadsworth,  Dyer  &  Chapin;  George  Steele;  I.  Burch  &  Co.;  Gur- 
nee,  Hayden  &  Co.;  H.  H  Mazie  &  Co.;  Neff  &  Church;  John  H.  Kin- 
zie;  Norton,  Walker  &  Co.;  DeWolff  &Co.;  Charles  Walker;  Thomas 
Hale;  Thomas  Richmond,  and  Raymond,  GIbbs  &  Co. 

"At  that  meeting  the  proper  initiatory  steps  were  taken  by  the  adop- 
tion of  resolutions  recognizing  the  necessity  for  a  Board  of  Trade,  adopt- 
ing a  constitution,  and  appointing  a  committee  to  prepare  by-laws.  At-  a 
second  meeting,  on  the  first  Monday  in  April,  the  report  of  this  commit- 
tee was  adopted,  and  a  general  invitation  extended  to  the  merchants  and 
business  men  to  meet  with  the  Board,  daily,  at  their  rooms,  over  George 
J.  Harris'  flour  store,  on  South  Water  street,  which  they  had  rented  for 
$110  per  annum.  George  Smith,  the  great  Scotch  banker,  was  elected 
their  Firsc  President,  but  declining  to  serve,  Thomas  Dyer  was  chosen  in 
his  stead,  and  Charles  Walker  (a  name  always  mentioned  with  respect), 
and  John  P.  Chaplin  were  elected  First  and  Second  Vice-Presidents.  The 
directors  chosen  were  G.  S.  Hubbard,  E.  S  Wadsworth,  George  Steele, 
Thomas  Richmond,  H.  G.  Loomis,  John  Rogers,  George  F.  Foster,  R.  C. 
Bristol,  J.  H.  Dunham,  G.  A.  Gibbs,  John  H.  Kinzie,  C.  Beers,  W.  S. 
Gurnee,  J.  H.  Reed,  E.  K.  Rogers,  J.  H.  Burch,  A.  H.  Burley,  W.  B. 
Ogden,  O.  Lunt,  E.  H.  Hadduck  and  L.  P.  Hilliard.  In  the  list  of  mem- 
bers we  find  the  additional  names  of  Matthew  Laflin,  Joseph  T.  Ryerson, 
M.  C.  Stearns,  J.  C.  Walter,  9.  A.  Smith,  Julian  S.  Rumsey,  John  C. 
Haines,  George  M.  Higginson  and  others  then,  as  now,  recognized  among 
the  most  honored,  respected  citizens  of  Chicago.  In  April,  1849,  Ihe 
first  annual  meeting  was  held,  and  the  officers  re-elected,  with  John  C. 
Dodge  as  Secretary.  A  committee  was  appointed  to  procure  daily  tele- 
£\  iphic  reports  of  the  Eastern  markets  for  the  use  of  the  members.  The 


BOARD  OF  TRADE. 


6  LAWS  OF  TRADE. 

hour  for  daily  meeting  on  'Change  was  fixed  at  9  A.  M.  The  legislature 
having  passed  an  act  of  incorporation  the  winter  previous,  in  April,  1850, 
the  old  board  went  out  of  existence  and  a  new  one  was  organized  under  the 
law,  with  the  following  provisions:  'This  organization  shall  be  called 
the  Board  of  Trade  of  Chicago.  Annual  and  semi-annual  meetings  shall 
be  held  and  special  meetings  shall  be  called  at  any  time  at  the  written 
request  of  any  five  members.  Each  member  joining  the  association  shall 
sign  the  constitution,  and,  with  the  exception  of  the  old  members,  pay 
five  dollars,  and,  in  addition,  pay  such  sums  semi-annually  as  may  be 
voted  by  the  board.'  The  annual  dues  in  addition  to  the  fee  for  admis- 
sion were,  I  believe,  two  dollars  for  each  member.  Shortly  after  this 
time  the  startling  fact  that  there  was  a  deficit  of  $146. 20  in  the  treasury 
of  the  old  Board  was  discovered.  The  annual  dues  were  immediately 
raised  from  two  to  three  dollars,  and  the  old  members  joining  the  new 
Board  were  required  to  pay  three  dollars  and  thus  this  enormous  debt 
which  had  created  such  consternation  was  honorably  extinguished.  In 
1850  the  principal  proceedings  of  the  board  were  the  adoption  of  resolu- 
tions complimentary  to  Stephen  A.  Douglass  and  Gen.  James  Shields  for 
their  services  in  obtaining  from  Congress  a  grant  of  land  to  aid  in  the 
construction  of  the  Illinois  Central  railroad.  The  daily  meetings  of  the 
board  were  so  thinly  attended  that  it  was  hoped  a  different  time  of  meet- 
ing would  prove  more  acceptable,  and  the  'Change  hour  was  fixed  be- 
tween 12  M.  and  1  p.  M.  By  the  time  of  the  annual  meeting  in  1851,  the 
affairs  of  the  Board  had  become  decidedly  blue.  The  treasurer's  book 
showed  a  balance,  on  the  wrong  side,  of  8165.96  and  no  assets.  Another 
assessment  of  $4  on  the  members  was  made,  and  the  institution  went  on. 
Frequently  during  that  year  only  one  of  the  members  would  put  in  an  ap- 
pearance at  the  hour  of  meeting,  and  it  is  fair  to  suppose  that  the  tran- 
sactions of  the  Board  were  rather  limited.  There  were  probably  no  'cor- 
ners' then.  Sometimes  not  even  one  member  appeared.  In  1852  the 
Board  changed  its  location  to  the  corner  of  South  Water  and  Clark 
streets,  where  the  fourth  annual  meeting  was  held.  There  were  now 
fifty-three  names  on  the  roll  of  members.  Another  removal  was  made  in 
that  year  to  No.  8  Dearborn  street,  where  the  fifth  annual  meeting  was 
held  in  1853.  The  most  important  proceedings  this  year  were  the  equali- 
zation of  rates  for  the  handling  of  goods,  and  the  adoption  of  a  resolution 
to  found  a  bank  with  a  capital  of  85,000,000  for  the  convenience,  of  the 
commerce  of  Chicago.  It  was  also  resolved  to  appoint  a  committee  to 
take  soundings  of  the  Chicago-  harbor,  and  petition  the  Common  Council 


BOARD  OF  TRADE.  7 

for  an  appropriation  to  defray  the  expenses  of  the  same.  It  was  still  a 
matter  of  great  difficulty  to  get  members  to  attend,  and  at  this  time  a 
happy  thought  struck  one  of  the  members.  He  proposed,  and  the  pro- 
position was  instantly  and  unanimously  adopted,  that  the  Secretary  be 
directed  to  furnish  a  free  lunch  consisting  of  crackers  and  cheese  with  a 
glass  of  ale  for  the  members.  From  this  time  the  attendance  on  the 
Board  began  to  increase,  and  its  fortunes  to  improve.  It  is  a  common 
saying,  that  the  way  to  men's  hearts  lies  through  their  pockets,  but  the 
Board  of  Trade,  in  1853,  improved  on  this  adage  by  the  discovery  that  the 
way  to  their  brains  and  enterprise  lies  through  their  stomachs.  In 
April,  1854,  the  sixth  annual  meeting  was  held;  Georgai/.  Gibb?,  Presi- 
dent; W.  D.  Houghtelling,  Vice-President;  and  James  Q.  Dalliba,  Sec- 
retary and  Treasurer.  The  location  of  the  Board  was  again  changed, 
this  time  to  the  corner  of  Wells  and  South  Water  street  (over  Purinton 
and  Scranton's  store),  where  they  paid  $250  per  year  rent,  and  allowed 
W.  D.  Wilson  the  use  of  the  rooms  for  taking  care  of  them.  The  tran- 
sactions of  the  board  during  this  year  began  to  increase  in  magnitude. 
In  April,  1855,  at  the  seventh  annual  meeting,  Hiram  Wheeler  was 
elected  President;  S.  B.  Pomeroy,  Vice-President;  and  W.  W.  Mitchell, 
Secretary.  A  reading  room  was  this  year  established.  The  board  now 
warmly  interested  itself  in  the  Georgian  Bay  canal,  and  sent  William 
Bross  and  George  Steele  to  Canada  to  advocate  it  before  the  Canadian 
Government.  It  may  be  remarked  in  this  connection  that  they  were 
successful  in  getting  a  charter,  and  ground  was  afterward  broken  for  the 
work,  but  beyond  this  nothing  was  done,  and  the  thing  was  passed  over 
and  apparently  forgotten.  It  appears  that  about  this  time  the  daily  sup- 
ply of  crackers  and  ale  was  in  some  way  neglected,  and  the  attendance 
of  members  soon  began  to  fall  off  and  became  'small  by  degrees  and 
beautifully  less.'  Then  the  supply  was  resumed,  and  then  came  a  crowd 
of  'dead  beats,'  to  keep  out  whom  a  door-keeper  was  appointed,  and 
the  Board  again  went  on  flourishingly.  At  the  eighth  annual  meeting  in 
April,  1856,  forty-five  new  members  were  added,  and  now  the  Board  was 
in  a  more  flourishing  condition  than  ever.  Charles  H.  Walker  was 
elected  President,  cards  of  admission  were  issued,  a  permanent  door- 
keeper was  appointed,  and  the  daily  attendance  of  members  was  so  good 
that  the  refreshments  were  ordered  discontinued.  From  this  time  on- 
ward, the  prosperity  of  the  Board  was  uninterrupted.  The  lower  floor  of 
Walter's  building  was  rented  for  $1200  per  annum,  and  the  hour  of 
dailv  meeting  changed  back  to  9  A.  M.  As  evidence  of  its  prosperity,  at 


8  LAWS  OF  TRADE. 

one  time,  on  the  6th  of  October  of  this  year,  122  new  members  were  ad- 
mitted. At  the  ninth  annual  meeting  in  1857,  seventy- three  new  mem- 
bers were  received.  The  Board  was  now  exceedingly  prosperous.  Mr. 
P.  L.  Wells,  formerly  connected  with  'The  Press,'  was  appointed  Super- 
intendent, to  look  after  its  interests,  with  a  salary  of  $1500  a  year.  At 
the  tenth  annual  meeting  in  1858,  twenty-nine  new  members  were  ad- 
mitted. Julian  S.  Rumsey  was  elected  President;  F.  H.  Barber,  Vice- 
President,  and  W.  W.  Mitchell,  Secretary.  The  admission  of  members 
was  now  confine?!  to  actual  residents.  The  offices  of  Secretary  and  Su- 
perintendent were  consolidated.  The  Grain  Inspector's  duties  were  de- 
fined, and  in  October,  Lee  and  Armstrong  were  given  permission  to  dis- 
pose of  stocks  wice  a  week  at  auction  in  the  rooms  of  the  company.  A 
new  charter  was  obtained,  conferring  privileges  commensurate  with  the 
expanding  growth  of  the  commerce  of  the  city,  and  this  charter  was, 
with  a  |new  set  of  rules  and  regulations,  presented  to  the  Board  and  ap- 
proved. At  the  time  of  the  eleventh  annual  meeting  in  1859,  there  were 
520  members  on  the  Secretary's  list;  and  on  the  proposition  of  John  S. 
Newhouse,  the  Board  resolved  to  lease  for  the  year  the  second  story  of 
a  new  building  he  was  then  erecting  on  South  Water  street,  at  $1,250 
per  annum.  These  rooms  they  took  possession  of  in  February,  I860, 
and  occupied  until  their  removal,  in  1865,  into  the  magnificent  hall 
which  stood  where  we  now  are  until  its  destruction  in  the  terrible  con- 
flagration of  the  9th  of  October,  1871.  In  April,  1860,  the  12th  annual 
meeting  was  held.  There  were  now  625  members.  Warehousemen 
were  now  required  to  make  weekly  statements  of  grain  in  store,  and 
daily  reports  of  shipments.  In  April,  1861,  the  thirteenth  annual  meet- 
ing was  held.  The  roll  now  contained  725  members,  and  the  treasurer 
held  in  his  hands  a  surplus  of  over  $4,000.  In  this  month  the  rebellion 
broke  out,  and  when  the  rebel  flag  was  hoisted  over  Sumpter,  the  stars 
and  stripes  were  unfurled  over  the  Board  of  Trade  of  Chicago. 

"It  would  give  me  unspeakable  pleasure  to  speak  of  the  noble  and  pat- 
riotic support  which  through  the  whole  four  years  of  civil  war,  distin- 
guished your  body  in  its  devotion  to  the  Union,  but  the  history  of  the 
part  it  bore  in  the  bloody  conflict  needs  no  recital  here.  The  records  of 
its  deeds  are  known  to  the  country,  and  are  imperishable.  From  this 
point  in  its  progress  the  board  rapidly  grew  in  importance  and  influence, 
and  the  magnitude  of  its  transactions  began  to  attract  the  attention  of 
the  great  commercial  centers  of  the  country.  Its  subsequent  history  is 
so  familiar  to  us  all  that  I  will  not  occupy  your  time  with  any  detailed 


BOARD  OF  TRADE.  9 

account  of  its  official  acts.  From  the  smallest  beginnings  it  has  become 
one  of  great  numerical  strength,  numbering  now,  I  believe,  over  1200 
members,  and  recognized  as  one  of  the  most  powerful  and  influential « 
commercial  organizations  in  the  world.  When  the  few  public  spirited 
merchants  whose  names  I  have  mentioned  first  assembled  in  that  little 
room  on  South  Water  street,  twenty-four  years  ago,  Chicago  contained  a 
population  of  only  20,000.  For  years  the  annual  transactions  of  the 
Board  amounted  to  a  sum  so  paltry  that  it  would  hardly  be  sufficient  to 
run  a  modern  'corner'  in  anything  for  a  week.  The  voluminous  statis- 
tics prepared  by  your  able  and  accomplished  Secretary,  and  laid  on  your 
tables  each  year,  furnish  an  interesting  study  for  the  merchant  and  busi- 
ness man.  In  1850,  only  twenty-two  years  ago,  the  entire  shipments  of 
grain  of  all  kinds  from  Chicago,  amounted  to  just  1,276,593  bu&hels.  For 
the  year  1872,  they  will  exceed  80,000,000  bushels.  In  1859,  the  ship- 
ments of  corn  were  262,013  bushels.  In  1872,  it  is  estimated  they  will 
exceed  40,000,000  bushels.  In  the  winter  of  1851  and  1852  the  number 
of  hogs  packed  was  22,036.  During  the  last  winter,  immediately  suc- 
ceeding the  great  fire,  which  some  of  our  neighboring  cities  supposed 
had  destroyed  our  commerce,  the  number  had  exceeded  1,200,000.  In 
1865,  the  total  receipts  of  live  hogs  for  the  whole  year  were  757,072. 
From  the  first  of  January  to  the  first  of  October,  1872,  the  enormous 
number  of  2,136,244  hogs  have  been  received  in  Chicago,  an  excess  of 
742,970  over  the  same  period  of  1871,  and  the  sry  is  sti  1  they  come. 
During  the  same  time,  being  the  first  nine  months  of  this  year,  the  num- 
ber of  cattle  received  was  522,435,  an  excess  of  90,000  over  the  same 
time  in  1871.  I  have  no  official  statistics  of  the  receipts  of  the  present 
year  of  many  other  products  of  the  country  which  seek  a  market  here, 
but  I  have  no  doubt  they  will  show,  in  most  cases,  a  corresponding  in- 
crease. In  1860,  the  number  of  pounds  of  wool  received  here  was  859,- 
248.  In  1871,  there  were  received  27,026,621  pounds.  In  i860,  we  re- 
ceived 262,000,000  feet  of  lumber.  In  1871,  over  1,000,000,000  feet. 
But  I  will  not  weary  you  with  these  dry  details.  Familiar  as  they  may 
sound  to  you,  these  enormous  figures  amaze  and  excite  the  world.  When 
we  bear  in  mind  that  the  transactions  of  your  Board  are  confined  to  the 
staple  products  mainly  of  the  West,  and  do  not  include  any  portion  of 
the  general  merchandize,  foreign  and  domestic,  soM  in  Chicago,  the  mag- 
nitude of  the  business  done  on  the  Board  of  Trade  seems  incredible.  It 
has  been  estimated  that  the  trading  done  on  'Change  the  present  year 
(1872)  amounts  to  at  least  $300,000,000." 


10  THE  LAWS  OF  TRADE. 

These  were  the  utterances  of  the  late  Mr.  Coolbaugh  on  the  auspic- 
ious occasion  of  the  interesting  ceremonies  attendant  upon  the  dedication 
of  the  new  Chamber  of  Commerce  building  in  1872.  And  as  he  pro- 
ceeds in  his  review  of  the  many  years  that  had  intervened  up  to  the  time 
from  the  date  in  1848  of  the  small  gathering  of  merchants  that  met  to 
take  the  initiatory  steps,  and  records  the  many  difficulties  they  encount- 
ered from  year  to  year  before  the  Board  of  Trade  of  Chicago  could  be 
regarded  as  being  permanently  established,  his  statements  are  full  of  in- 
terest and  embody  the  early  history  of  one  of  the  most  important  and  in- 
fluential institutions  of  the  Western  Commercial  Emporium.  That  it  is 
destined  to  "grow  with  the  erowth  and  strengthen  with  the  strength"  of 
the  great  city  of  which  it  is  the  just  pride,  is  beyond  question. 

At  the  annual  meeting  held  in  1859,  Julian  S.  Rumsey  was  re-elected 
President,  and  Thomas  H.  Beebee  was  elected  first  Vice-President,  and 
Stephen  Clary,  Second  Vice-President;  Seth  Catlin  was  elected  Secre- 
tary and  George  Watson,  Treasurer,  which  offices  they  held  until  1862. 

It  was  during  Mr.  Rumsey's  administration  that  he  urged  upon  the 
Board  certain  reforms,  and  in  these  matters  was  ably  assisted  by  George 
M.  How,  Esq.,  and  Charles  E.  Culver,  Esq.  And  resulting  from  such 
action  statistical  reports  were  first  established  as  well  as  inspection  on 
grain,  and  the  Board  were  now  beginning  to  get  into  good  shape  and 
transactions  were  being  placed  upon  a  more  equitable  basis.  Mr.  Rum- 
sey was  one  of  the  early  actors  in  the  work  to  establish  the  Board,  and 
through  a  long  and  highly  creditable  business  career,  he  has  been  active, 
and  no  other  member  of  the  Board  has  done  more  to  promote  its  well 
doing. 

In  1860,  Ira  Y.  Munn  was  elected  President;  Eli  Bates  and  John  V. 
Farwell,  respectively,  first  and  second  Vice-Presidents.  Some  idea  of 
the  growth  of  the  Board  up  to  this  time,  may  be  gained  from  the  fact 
that  the  storage  capacity  of  the  elevators  of  the  city  was  6,815,000  bush- 
els of  grain. 

In  1861,  the  officers  elected  were  Stephen  Clary,  President;  Clinton 
Briggs  and  E.  G.  Wolcott,  First  and  Second  Vice-Presidents.  The  re- 
bellion had  now  broken  out  in  this  year,  and  as  soon  as  it  was  known  that 
Fort  Sumpter  had  been  fired  upon  by  the  Confederates,  the  Board  com- 
menced its  work  of  equipping  and  fitting  out  regiments  for  the  field  to 
sustain  the  old  flag  and  hold  together  the  Union  of  the  States,  firm  and 
imperishable.  Nobly  did  the  gallant  regiments  perform  their  work,  and 
when  their  decimated  ranks  returned  home,  they  brought  with  them  the 


BOARD  OF  TRADE.  11 

prestige  of  having  crowned  the  institution  as  well  as  themselves  with  a 
halo  of  glory. 

At  the  election  in  1862,  C  T.  Wheeler  was  elected  President;  and 
W.  H.  Low  and  John  L.  Hancock  respectively,  First  and  Second  Vice- 
Presidents.  The  growth  of  the  institution  was  almost  marvelous,  both 
in  membership  and  the  value  of  its  transactions.  The  Board  con- 
tinued to  equip  and  fit  out  regiments  for  the  field  of  warfare.  It 
was  in  this  year  that  General  Frank  Sherman  started  for  the  seat  of  war, 
and  in  doing  so  passed  in  review  before  the  members  of  the  Board  and 
was  addressed  by  Ira  Y.  Munn,  Esq.  During  the  summer  months,  Seth 
Catlin,  Secretary  of  the  Board,  died,  and  John  M.  Beaty,  succeeded  to 
the  office. 

In  1863,  John  L.  Hancock  was  elected  President,  N.  K.  Fairbank 
and  Charles  Randolph,  First  and  Second  Vice-Presidents;  John  M.  Beaty 
and  George  F.  Rumsey,  were  elected,  respectively,  Secretary  and  Treas- 
urer. Mr.  Be%ty  continued  in  office  until  1869  and  Mr.  Rumsey  until 
1870.  At  this  time  the  capacity  of  the  elevators  had  increased  to  8,615,- 
000  bushels,  or  an  increase  of  nearly  two  million  bushels  in  three  years. 

At  the  annual  election  in  1864,  Mr.  Hancock  was  re-elected  Presi- 
dent, and  Charles  Parker  and  C.  J.  Gilbert,  Vice-Presidents.  This  was 
quite  a  notable  year  in  the  history  of  the  Board;  the  number  of  members 
had  reached  1,462,  and  arrangements  were  made  with  the  Chamber  of 
Commerce  to  erect  a  building  on  the  corner  of  La  Salle  and  Washing- 
ton streets,  which  the  Board  undertook  to  occupy  for  ninety-nine  years. 
The  charter  of  the  Board  of  Trade  would  only  admit  of  a  builiing  and 
real  estate  of  the  value  of  $200,000,  a  sum  that  was  thought  inadequate 
to  the  cost  of  a  lot  and  a  suitable  building  to  meet  the  demands  of  its 
expanded  and  constantly  growing  condition.  The  charter  of  the  Cham- 
ber of  Commerce  did  not  restrict  its  power  to  hold  property  to  any  speci- 
fied amount.  Another  event  of  this  year  was  the  acceptance  of  an  in- 
vitation from  the  Board  of  Trade  of  Boston  to  visit  that  city  as  its  guests, 
with  the  principal  Boards  of  the  country.  The  high  estimation  in  which 
the  Board  of  Trade  of  Chicago  was  held  by  the  business  men  of  the  coun- 
try at  large,  was  fully  demonstrated  on  this  occasion,  its  entire  journey 
to  Boston  and  return  through  Canada  being  a  perfect  ovation. 

At  the  annual  election  of  April,  1865,  Charles  Randolph,  the  present 
able  and  popular  Secretary  of  the  Board,  was  elected  President,  and  T. 
Maple  and  John  C.  Dore,  First  and  Second  Vice-Presidents.  This  was  a 
most  eventful  year.  The  officials  of  the  Board  had  but  scarcely  taken 


12  LAWS  OF  TRADE. 

their  seats,  when  the  wires  spread  over  the  land  the  sad  tidings  that 
Abraham  Lincoln,  President  of  the  United  States,  had  been  assasinated 
at  Washington  City.  The  Board  of  Trade  rooms  immediately  became  the 
centre  of  expression  of  sorrow  on  that  sad  event,  and  the  succeeding  day 
after  the  arrival  of  the  news,  a  public  meeting  was  held  in  the  Exchange 
Hall,  filling  it  to  repletion.  The  greatest  solemnity  and  a  feeling  of  .deep 
sadness  prevailed  among  those  present.  Suitable  resolutions  were 
adopted  expressive  of  the  public  sympathy  and  sorrow  for  the  great  cal- 
amity that  had  fallen  upon  the  country.  On  the  arrival  of  the  remains 
of  the  martyred  President  in  this  cily  on  May  first,  the  members  of  the 
Board  turned  out  en  masse  and  took  part  in  the  solemn  proceedings  in 
conveying  to  their  last  resting  place  the  remains  of  the  honored  depart- 
ed, and  a  large  delegation  who  met  the  remains  on  their  way  hither  at 
Michigan  City  continued  the  journey  to  Springfield. 

In  May,  1865,-  the  first  arrangements  were  made  for  the  deposit  of 
margins  by  members  ot  the  Board  on  time  contracts.  The  Confederate 
armies  had  now  been  beaten  at  all  points.  General  Lee  had  made  his 
famous  surrender  at  Appomattox  Court  House  to  General  Grant,  and  the 
war  had  ceased.  Then  came  the  disbanding  of  the  volunteer  armies  of 
the  United  States  in  the  field,  and  on  their  return  home  public  recep- 
tions were  given  on  'Change  to  tho:e  who  had  been  distinguished  as  de- 
fenders of  the  Nation,  including  Ger-erals  Grant,  Sherman,  Webster, 
Howard  and  others,  and  the  regiments  and  battery  which  had  served  un- 
der the  name  of  the  Board  of  Trade,  were  given  grand  receptions,  and  in 
each  case  a  splendid  banquet  by  the  Board.  In  June  a  delega- 
tion from  the  Board,  in  company  with  delegations  from  Mil- 
waukee, St.  Louis,  and  Detroit,  visited  Boston  by  invitation  of 
the  Boston  Board  of  Trade,  which  visit  accomplished  its  intention  of 
greatly  promoting  the  business  relations  between  Chicago  and  Boston. 
In  July  the  great  international  convention  was  held  at  Detroit,  and 
the  Board  was  largely  represented.  Its  delegates,  included  such  names 
as  the  late  W.  F.  Coolbaugh,  J.  Young  Scammon,  McChesney,  and  others 
equally  as  prominent,  most  of  whom  were  conspicuous  in  the  de- 
bates and  the  various  discussions  that  took  place  in  that  body. 
In  August,  the  new  Exchange  Hall  was  occupied,  and  at  its  opening, 
the  occasion  was  honored  by  distinguished  visitors  from  all  parts  of  the 
country  and  Canada,  and  the  event  was  signalized  by  the  most  marked, 
and  magnificent  series  of  festivities  ever  observed  in  commercial  circles  in 
this  city.  In  November,  owing  to  the  damp  condition  of  grain  then  in  store 


BOARD  OF  TRADE.  13 

and  the  continued  unfavorable  state  ot  the  weather,  the  elevator  proprie- 
tors advanced  the  rate  of  storage  to  about  double  the  amount  charged 
previously,  in  order,  as  they  claimed,  to  force  the  grain  forward,  and  in- 
to consumption  before  the  close  of  navigation.  This  produced  great  dis- 
satisfaction, and  resulted  in  one  of  thy  most  exciting  and  angry  meetings 
ever  held.  But  the  outcome  of  these  proceedings  was,  that  inspectors 
appointed  by  the  Board  were  placed  in  each  of  the  elevators,  whose  busi- 
ness it  was  to  keep  a  knowledge  of  the  receipt  and  delivery  of  all  grain, 
and  to  report  upon  its  condition  when  necessary.  To  the  action  of  the 
elevator  proprietors  on  that  occasion  may  be  traced  all  the  subsequent 
legislative  enactments  by  the  State  on  the  subject  of  grain  storage  and 
inspection.  In  March,  1866,  the  Board,  with  great  unanimity,  adopted  a 
memorial  to  Congress  in  favor  of  the  passage  of  a  National  Bankrupt  Law. 
In  1866  Hon.  John  C.  Dore  was  elected  President,  and  P.  L.  Underwood 
and  E.  W.  Densmore,  Vice-Presidents.  No  special  incidents  of  note  are 
chronicled,  but  the  continued  growth  and  expansive  business  of  the 
Board,  and  its  transactions  still  attracted  the  attention  of  the  world. 

In  1867,  Wiley  M.  Egan  was  elected  President,  and  Lyman  Blair 
and  C.  B.  Goodyear,  were  elected  Vice-Presidents.  When  Mr.  Egan 
assumed  the  presidency,  the  Board  was  in  debt,  but  when  he  retired 
from  the  office  the  indebtedness  had  been  liquidated,  and  there  was 
money  in  the  hands  of  the  treasurer. 

In  1868,  E.  V.  Robbins  was  elected  President,  and  E.  K.  Bruce  and 
J.  D.  Cole,  Jr.,  were  elected  Vice-Presidents.  The  principal  event  of 
this  year  was  the  sending  of  delegates  to  Philadelphia  for  the  formation 
of  a  National  Board  of  Trade.  The  delegates  were  Wiley  M.  Egan, 
Charles  Randolph,  Ira  Y.  Munn  and  V.  A.  Turpin. 

At  the  annual  meeting  in  1 869,  J.  M.  Richards  was  elected  Presi- 
dent, and  Samuel  H.  McCrea  and  H.  A.  Towner,  respectively,  First  and 
Second  Vice-Presidents.  L.  V.  Parsons  was  elected  Treasurer.  To 
show  the  extent  to  which  the  business  of  the  Board  had  reached  at  this 
time,  we  may  mention  that  thft  receipts  of  grain  for  the  year  were  about 
fifty- two  and  one- half  million  bushels^  to  which  may  be  added  over  two 
million  barrels  of  flour.  In  the  Spring  of  this  year,  John  M.  Beaty,  who 
had  served  most  acceptably  as  Secretary  of  the  Board  from  the  time  of 
his  first  election  in  1863,  tendered  his  resignation,  which  was  accepted, 
and  Charles  Randolph  was  elected  as  his  successor,  and  has,  since  that 
period,  filled  the  official  position  with  marked  ability.  It  is  not  inappro- 
priate at  this  point  to  say  that  Mr.  Randolph  is  now  quite  a  prominent 


14  LAWS  OF  TRADE. 

figure  of  the  Board  of  Trade.  He  is  a  gentleman  of  large  business  ex- 
perience, most  decided  in  the  opinions  he  may  entertain,  and  maintains 
them  with  manly  vigor.  This  characteristic  peculiar  to  him,  has,  with 
some  people,  created  a  prejudice;  but  that  he  is  conscientious  in  his  con- 
victions and  seeks  with  an  honest  purpose  to  promote  the  general  wel- 
fare of  the  Board,  there  cannot  be  a  question. 

At  the  annual  election  in  1870,  Samuel  H.  McCrea  was  elested 
President,  and  B.  F.  Murphy  and  W.  Dater,  respectively,  Vice-Presi- 
dents,  and  Charles  Randolph,  re-elected  Secretary.  There  is  nothing  of 
any  importance  to  chronicle  during  this  year. 

In  1871,  Joseph  W.  Preston  was  elected  President,  and  Charles  E. 
Culver  and  W.  N.  Brain ard,  Vice-Presidents,  and  Orson  Smith,  Treas- 
urer. During  this  year  there  was  an  extraordinary  increase  in  the  re- 
ceipt of  hogs,  wool  and  lumber.  The  year  was  made  memorable  by  the 
occurrence  of  the  great  conflagration  of  the  9th  and  10th  of  October,  by 
which  over  $150,000,000  worth  of  property  was  destroyed,  and  120,000 
persons  rendered  homeless.  The  Board  of  Trade  witnessed  the  complete 
destruction  of  all  its  records,  archives  and  valuables,  as  well  as  of  the 
noble  building  in  which  they  had  been  domiciled  for  over  six  years,  and 
which  had  become  endeared  to  them  as  the  scene  of  many  a  brilliant 
triumph  in  trade.  The  Chamber  of  Commerce  in  addition  to  a  similar 
experience,  lost  their  building.  We  need  not  dwell  upon  this  dark  chap- 
ter in  the  history  of  the  Board  of  Trade.  The  story  of  the  great  conflag- 
ration with  all  of  its  harrowing  details  is  as  familaf  to  our  readers  as 
household  words. 

The  Board  secured  temporary  quarters  on  Canal  street  immediately 
after  the  fire,  but  the  accommodations  were  meagre  and  the  refuge  com- 
fortless. There  was  a  temporary  check  to  the  tide  of  produce  that  had 
been  setting  Chicagoward  from  all  parts  of  the  Northwest.  The  busi- 
ness prosperity  of  Chicago  for  a  brief  period  hung  on  the  balance.  The 
season  of  navigation  would  be  closed  in  a  few  days,  and  the  question 
was,  Can  Chicago  recover  from  the  terrible  shock  in  time  for  the  transac- 
tion of  any  further  business  before  that  event  takes  place?  During  that 
day  or  two  of  darkness  and  doubt,  when  men  wondered  whether  the  city 
could  be  or  would  be  rebuilt  and  rehabilitated,  The  Board  of  Trade  com- 
prising so  much  of  the  wealth,  enterprise,  energy  and  courage  of  the  city, 
had  already  decided  the  question.  From  the  cheerless  quarters  on  Canal 
street,  the  fiat  went  forth,  "CHICAGO  STILL  LIVES!  "  As  soon  as  the  vaults 
of  the  Board,  amid  the  smouldering  debris  could  be  opened  and  the  lease 


BOARD  OF  TRADE.  15 

and  agreement  from  the  Chamber  of  Commerce  procured  therefrom,  the 
following  resolution  was  unanimously  adopted: 

Resolved^  That  this  Board  of  Directors  hereby  notify  the  Chamber 
of  Commerce  corporation,  that  this  Board  will  comply  with  the  provis- 
ions of  the  lease  held  from  them;  and  in  conformity  with  that  lease,  the 
Board  of  Trade  hereby  require  that  the  Chamber  of  Commerce  re-con- 
struct at  once  their  building  in  as  good  shape  as  it  was  originally,  and  it 
is  the  wish  of  the  Board  to  occupy  the  ^building  at  the  earliest  possible 
day. 

In  response  to  that  resolution,  the  Chamber  of  Commerce  at  once 
began  the  work  of  rebuilding.  Two  days  after  the  fire,  while  the  ruins 
were  still  smoking,  men  were  at  work  removing  the  debris.  This  prompt 
action  of  the  Board  of  Trade  and  Chamber  of  Commerce  had  the  effect  to 
revive  the  sinking  courage  of  hundreds  of  others,  and  as  the  determina- 
tion of  those  bodies  went  abroad,  by  wire  and  mail,  the  grand  produce 
wave  that  had  been  so  lately  arrested  in  its  course,  flowed  on  again.  A 
thousand  temporary  makeshifts  were  devised,  and  the  wealth  of  the  West 
commenced  again  to  flow  through  Chicago.  The  grain  was  received  and 
shipped,  and  the  cattle  and  hogs  continued  to  arrive  in  greater  numbers 
than  before.  This  crisis  was  passed,  and  Chicago,  though  physically 
lying  in  ruins,  in  spirit  was  unconquered  and  unconquerable. 

As  illustrative  of  the  effect  of  this  action  of  the  Board  of  Trade,  we 
may  mention  that  in  the  months  of  November  and  December  immedi- 
ately succeeding  the  fire,  the  aggregate  receipts  of  grain  amounted  to 
11,863,937  bushels,  against  6,818,314  bushels  for  the  corresponding  period 
in  1870,  and  6,246,043  bushels  in  1869. 

The  Board,  finding  their  quarters  on  Canal  street  entirely  too  con- 
tracted for  their  purposes,  made  arrangements  for  the  preparation  of  a 
room  in  the  Central  Block,  on  Market  street,  near  Washington,  where 
they  continued  until  the  completion  of  the  new  Chamber  of  Commerce 
building. 

In  the  spring  of  1872  J.  W.  Preston,  Esq.,  was  re-elected  President, 
Chas.  E.  Culver  and  W.  N.  Brainard,  Vice;  Presidents,  and  Orson  Smith, 
Treasurer.  The  business  of  the  year  showecrto  extraordinary  advantage 
in  comparison  with  that  of  previous  years.  The  total  shipments  for  the 
year  were  80,000,000  bushels  of  grain,  against  1,276,593  in  1850.  The 
shipments  of  corn  amounted  to  over  40,000,000  bushels,  against  262,013 
bushels  in  1859.  From  the  1st  of  January,  1872,  to  October  of  the  same 
year,  the  total  number  of  hogs  received  was  2,136,244,  against  757.072 


16  LAWS  OF  TRADE. 

for  the  whole  of  the  year  1865.  During  the  first  nine  months  of  1872 
the  number  of  cattle  received  was  522,435,  an  increase  of  over  90,000 
over  the  number  in  1871. 

The  principal  event  of  the  year  was  the  occupation  by  the  Board  of 
the  new  Chamber  of  Commerce  building  on  the  old  site,  corner  of  Wash- 
ington and  La  Salle  streets,  which  occurred  on  the  9th  of  October,  the 
first  anniversary  of  its  destruction.  The  best  skill  was  employed  in  its 
erection,  and  every  detail  was  watched  with  the  jealous  care  of  archi- 
tects anxious  to  make  the  edifice  a  monument  worthy  to  secure  for  them 
the  approbation  of  all  who  look  upon  it.  The  building  was  dedicated 
with  appropriate  ceremonies  on  the  occasion  of  its  occupation  by  the 
Board  of  Trade — to  which  allusion  has  been  previously  made. 

During  this  year  there  were  periods  when  general  disaster  prevailed, 
arising  from  the  operations  of  two  different  firms  in  their  frantic  efforts 
to  "corner"  the  markets,  which  they  succeeded  in  doing,  but  each  party 
brought  upon  themselves  the  well- merited  obloquy  of  being  obliged  to 
"bite  the  dust."  The  firm  of  Chandler,  Pomeroy  &  Co.  started  in  to 
"corner"  the  market  on  oats,  and  in  a  short  period  after  a  vain  attempt  to 
reap  a  "golden  harvest"  therefrom,  in  their  visionary  idea  of  an  endeavor 
to  buy  up  all  the  oats  there  was  in  the  world  (as  a  witness  stated  on  the 
stand  in  open  court,  such  was  his  belief),  they  went  down  with  a  crash, 
and  for  a  time  their  ignoble  transactions  had  clogged  the  wheels  of  com- 
merce, and  the  best  and  soundest  men  in  the  commercial  world  of 
Chicago  stood  para'yzed  at  the  audacious  matter  that  confronted  them, 
and  this  bankrupt  firm  finally  disappeared  from  sight.  At  about  this 
time  John  B.  Lyon  buckled  on  his  armor  and  strode  forth  the  champion 
of  the  wheat  maiiet,  but  unfortunately  the  sheaves  that  spring  from  the 
earth,  that  glisten  and  wave  in  their  beauty  and  play  with  the  sunlight 
with  their  treasure,  and  sleep  listlessly  in  the  shadows  of  night  with 
other  collateral  matter,  were  too  much  for  even  the  over  confident  and 
too  zealous  Mr.  Lyon  to  handle.  His  ambitious  desires  were  defeated; 
his  armor  became  tarnished,  and  he  was  laid  out  a  sprawling  cham- 
pion, which  sad  disaster  cairied  with  it  a  suspension  from  business  of 
some  thirty  or  forty  firms.  Here  was  general  consternation,  and  after 
Mr.  Lvon  had  gathered  himself  together  he  offered  25  per  cent,  upon  his 
obligations,  which  was  accepted  by  all  his  creditors  with  the  exception 
of  two  firms — T.  H. 'Seymour  &  Co.  and  Dugan,  Case  &  Spear — who, 
after  much  litigation  in  the  courts,  were  paid  in  full,  and  Mr.  Lyon  in 


BOARD  OF  TRADE.  17 

1874  was  restored  to  the  privileges  of  the  Board,  from  which  he  had  been 
suspended. 

The  time  for  holding  the  annual  meeting  in  the  year  1873  had  been 
changed  from  April  to  the  month  of  January.  At  this  meeting  Charles 
E.  Culver  was  chosen  President.  His  popularity  with  the  members  of  the 
Board  was  evidenced  by  the  fact  that  in  the  balloting  there  were  only 
two  votes  cast  against  him.  W.  N.  Brainard  and  Howard  Priestly  were 
respectively  elected  First  and  Second  Vice-Presidents.  Mr.  Randolph 
and  Mr.  Smith  were  re-elected  Secretary  and  Treasurer.  At  the  expira- 
tion of  Mr.  Culver's  term  in  office  he  was  solicited  to  become  a  candi- 
date for  re-election,  but  he  declined  to  do  so.  He  was  then  nominated 
for  a  membership  on  the  Committee  of  Appeals,  to  which  position  he 
was  elected  by  a  most  decided  majority.  Without  making  invidious 
comparisons  it  may  be  truly  affirmed  that  the  Board  never  had  a  more 
active,  capable  and  efficient  Chief  Executive  officer  than  in  the  person  of 
Mr.  Culver.  He  is  a  gentleman  of  slight  build,  has  the  unmistakable 
aspect  and  air  of  a  man  of  carefully  cultivated  mind,  refined  by  the  life- 
long habit  of  entire  conscientiousness,  and  familiarity  with  the  best 
society,  together  with  those  subtle  influences  which  come  of  travel,  both 
at  home  and  abroad — he  is  self  poised,  rather  reticent,  wholly  modest, 
entirely  self-respecting.  No  member  of  the  Board  has  labored  with  more 
effectiveness  than  he,  in  seeking  to  purify  the  commercial  character  of 
the  Board,  and  free  it  from  the  scandal  of  corrupt  practices.  Mr.  Culver 
may  be  set  down  as  a  successful  man,  thus  far  in  life,  and  is  a  living 
proof  of  the  fact  that  the  completest  integrity  of  Christian  principles  is 
no  detriment  to  distinguished  success  in  business.  During  his  incum- 
bency of  the  office  of  President  of  the  Board,  the  financial  panic  oc- 
curred, which  proved  so  disastrous  to  all  our  industries;  but  the  Board  of 
Trade  proved  herself  a  stanch  craft,  and  weathered  the  gale  without 
damage.  Referring  to  this  most  creditable  and  gratifying  fact,  President 
Culver,  in  his  annual  report,  says:  "  While  many  associations  similar  in 
character  to  our  own  were  forced  to  succumb  to  the  pressure  of  the  panic, 
and  were  obliged  temporarily  to  suspend  business,  this  Board  of  Trade 
suffered  no  adjournment  of  its  regular  business  sessions;  and  not  one  of 
its  members  was  reported  to  have  failed  by  reason  of  the  panic."  In  the 
years  1871,  1872  and  1873  Mr.  Culver  was  the  representative  of  the 
Board  as  a  delegate  to  the  meetings  of  the  National  Board  of  Trade, 
which  were  held  in  those  respective  years  in  the  cities  of  St.  Louis,  Chi- 
cago and  Baltimore,  and  he  was  honored  by  that  distinguished  body  by 


18  LAWS  OF  TRADE. 

• 

being  made  one  of  its  Vice-Presidents.  Mr.  Culver  also  presided  on  the 
memorable  occasion  of  the  large  and  enthusiastic  meeting  of  the  mem- 
bers of  the  Board  of  Trade,  held  in  the  main  hall  in  the  year  1872,  for 
the  purpose  of  dedicating  the  new  Chamber  of  Commerce  building  to  the 
purposes  for  which  its  founders  designed  it,  and  which  had  then  been 
erected  and  completed  on  the  anniversary  day  of  the  great  conflagration 
of  the  9th  of  October  1871. 

On  the  arrival  of  the  delegates  in  this  city  in  1873  to  attend  the 
meeting  of  the  National  Board  of  Trade,  Mr.  Culver  received  the  gen- 
tlemen representing  the  various  Boards  of  Trade,  and  delivered  the  ad- 
dress of  welcome.  He  also  presided  on  the  occasion  of  the  grand  ban- 
quet at  the  Grand  Pacific  Hotel,  given  in  honor  of  the  delegates  to  the 
meeting  of  the  National  Board  of  Trade  by  the  members  of  the  Board  of 
Trade  of  our  city,  at  which  were  present  many  prominent  and  distin- 
guished guests  from  all  parts  of  the  country. 

At  the  annual  election  held  in  January,  1874,  George  M.  How  was 
chosen  President;  Howard  Priestly  and  John  R.  Bensley,  respectively, 
Vice-Presidents. 

Mr.  How  has  been  a  member  of  the  Board  since  March,  1855.  He 
was  chairman  of  the  Standing  Committee  in  the  years  1857  and  1858, 
under  the  old  organization,  and  assisted  the  late  Seth  Catlin,  then  Secre- 
tary, in  compiling  the  first  annual  report  of  the  Board  of  Trade.  During 
the  official  existence  of  Julian  S.  Rumsey,  as  President,  he  was  earnest 
and  active  in  assisting  that  gentleman  in  instituting  reforms,  then  deemed 
necessary  by  the  intelligent  and  active  members  to  keep  pace  with  the 
growth  and  increasing  business  of  the  Board.  At  this  time  the  system 
was  inaugurated  for  grain  inspection,  which  has  since  been  adopted  by 
all  the  commercial  organizations  of  the  country. 

In  1868  Mr.  How  first  represented  the  Board  as  a  delegate  to  the 
meetings  of  the  National  Board  of  Trade,  and  he  was  subsequently 
honored  in  a  similar  manner  by  the  Board  during  the  years  1869,  '72, '73, 
'75,  and  1876.  At  the  meetings  of  each  of  the  last  two  years  named  he 
was  selected  by  that  distinguished  body  as  one  of  the  Vice-Presidents. 
It  was  during  President  How's  official  term  that  the  "Sturges  Corner" 
came  to  the  surface,  and  which  has  since  become  a  matter  of  public 
notoriety.  Mr.  Starges  in  his  vain  desire  "to  corner"  the  market  came  to 
grief,  and  involved  himself  in  serious  trouble^  which  has  been  his  com- 
panion ever  since,  on  account  of  irregularities  existing,  as  it  was  charged, 
in  his  business  transactions.  On  October  5th,  1874,  complaint  was  made 


BOARD  OF  TRADE.  19 

to  the  Board  of  Directors,  signed  with  the  names  of  twenty-four  promi- 
nent members,  setting  forth  that,  "We  believe  W.  N.  Sturges  is  guilty  of 
conduct  calculated  to  degrade  our  commercial  reputation  and  bring  our 
Association  into  geneial  disrepute,"  etc.,  etc.  This  complaint  was  ac- 
companied with  specifications,  and  respectfully  and  earnestly  requested 
the  Board  of  Directors  to  investigate  the  charges,  and  "in  case  the 
charges  named,  or  any  of  them,  are  sustained  by  the  evidence  that  may 
be  submitted  that  the  same  may  be  reported  to  the  Association  that  it 
may  act  upon  Mr.  Sturges  expulsion."  The  hearing  of  the  pomplaint 
was  begun  before  the  Board  of  Directors  on  the  12th  of  October,  1874, 
and  was  continued  until  the  Gth  of  November  following,  which  resulted 
in  the  following  report  from  the  Board  of  Directors  to  the  Association, 
to  wit:  "We  have,  after  mature  deliberation,  decided  that  the  prosecu- 
tion have  established  that  Mr.  Sturges  has  been  guilty  of  certain  acts 
which  this  Board  deem  and  charge  to  be  uncommercial  transactions."  In 
the  meantime,  Sturges  served  upon  the  Board  of  Directors  a  lengthy 
document,  wherein  he  refused  "to  be  governed  by  the  rules  of  the  Asso- 
ciation, and  denied  its  jurisdiction  over  him  as  a  member."  This  docu- 
ment was  disregarded  by  the  Board  of  Directors,  for  on  the  24th  of 
November  the  balloting  for  Sturges'  expulsion  commenced  at  10  o'clock 
A.  M.,  and  was  continued  until  3:35  P.  M.  An  interruption  then  took 
place  by  the  service  of  an  injunction  procured  by  Mr.  Sturges  on  an 
ex parte  application.  At  the  time  of  the  interruption  937  members  had 
cast  their  ballots,  and  657  of  theso  were  for  expulsion,  while  only  279 
were  against  his  expulsion.  And  on  the  29th  of  December,  1874,  after 
the  injunction  had  been  dissolved,  an  opportunity  was  given  to  those 
members  of  the  Board  of  Trade  who  had  not  voted  on  the  previous  occa- 
sion to  cast  their  ballots,  and  39  votes  were  polled,  of  which  24  were 
for  expulsion  and  15  against  expulsion. 

On  the  27th  day  of  November,  1874,  the  President  and  Directors  of 
the  Board  of  Trade  filed. an  answer  to  the  bill  which  Mr.  Sturges  had 
procured  upon  ex  parte  application.  And  on  the  3d  of  December  a 
motion  to  dissolve  the  injunction  was  argued  before  Judge  Williams, 
but  the  complainant  procured  a  continuance  of  the  same.  On  the  21st 
of  December  the  court  dissolved  the  injunction,  and  on  the  28th  of  De- 
cember, 1874,  the  complainant  took  an  appeal  to  the  Supreme  Court,  and 
soon  after  the  appeal  an  order  was  made  by  Hon.  W.  K.  McAllister, 
then  one  of  the  justices  of  the  Supreme  Court,  that  the  injunction  should 
be  continued  pending  the  appeal,  and  under  said  injunction  the  relator 


20  LAWS  OF  TRADE. 

continued  to  exercise  the  privileges  of  membership  until  the  23d  of 
January,  1878,  the  judgment  of  affirmance  by  the  Supreme  Court  of 
the  decree  of  the  Circuit  Court  dismissing  the  case  not  having  been 
entered  until  January  21,  1878.  Mr.  Sturges  then  on  the  16th  of  April 
made  application  to  the  President  and  the  Board  of  Directors  for  relief 
from  expulsion,  which  they  declined  by  a  vote  of  16  to  1.  He  then  ap- 
plied for  a  writ  of  mandamus  before  Judge  McAllister  to  compel  the 
Board  of  Directors  to  grant  him  the  privileges  of  a  member.  This  suit 
was  not  heard  by  Judge  McAllister,  but  was  removed  and  heard  before 
Judge  Rogers,  who  tried  the  case  with  a  jury.  Judge  Rogers  in  trying 
the  case  gave  the  jury  special  instructions  that  in  their  conclusion  they 
would  simply  find  for  either  one  of  the  two  parties.  The  verdict  of  this 
jury  was  favorable  to  Mr.  Sturges,  .and  then  the  President  and  Board  of 
Directors  appealed  this  case  to  the  Supreme  Court.  Mr.  Sturges  then 
made  an  ex parte  application  before  Judge  McAllister  for  an  injunction 
to  prevent  the  President  and  Board  of  Directors  from  interfering  with 
his  privileges  as  a  member  of  the  Board  of  Trade  pending  the  appeal. 
A  temporary  injunction  was  granted  and  the  case  was  then  afterwards 
heard  and  urged  before  Judge  Farwell,  who  dissolved  the  injunction,  and 
Sturges  then  appealed  this  case  to  the  Supreme  Court  and  made  applica- 
tion before  Judge  Dickey,  of  the  Supreme  Court,  to  revive  the  injunc- 
tion, pending  the  appeal,  which  was  granted.  So  that  there  are  now  two 
cases  pending  in  the  Supreme  Court  between  W.  N.  Sturges  and  the 
President  and  the  Board  of  Directors  of  the  Board  of  Trade. 

The  foregoing  are  the  principal  points  in  a  condensed  form 
of  the  efforts  and  the  many  expedients  resorted  to  by  Mr.  Sturges 
to -obtain  his  re-instatement,  with  full  privileges  as  a  member 
of  the  Board  of  Trade.  That  he  holds  the  position  in  high 
estimation,  or  that  such  would  greatly  accrue  to  his  personal  ben- 
efit, is  evident  from  the  persistent  and  very  determined  fight  he  has  made 
to  accomplish  his  wishes.  And  it  is  as  equally  true  of  the  President  and 
the  Directors  of  the  Board  of  Trade,  that  they  believe  Mr.  Sturges  has 
in  his  business  transactions  trampled  upon  the  dignity  and  injured  the 
good  name  of  the  Board  of  Trade,  from  the  determined  spirit  they 
have  manifested  in  defending  their  actions  in  this  vexatious  matter.  In 
October  of  this  year  Alexander  Geddes,  a  member  of  the  Board,  who 
had  hitherto  been  regarded  as  a  gentleman  of  decided  conservative  ten- 
dencies in  his  mole  of  transacting  business,  ran  a  successful  "corner"  in 
barley.  It  is  seldom  that  such  a  result  can  be  recorded,  for  as  a  general 
thing  "corners"  result  in  disaster. 


BOARD  OF  TRADE.  21 

At  the  annual  election  held  in  January,  1875,  George  Armour  was 
elected  President;  John  R.  Bensley  and  D.  H.  Lincoln,  respectively, 
First  and  Second  Vice-Presidents.  The  events  and  experiences  of  the 
previous  year  suggested  to  the  Board  of  Directors  that  important  modi- 
fications should  be  made  in  the  general  rules,  and  the  subject  of  a  revi- 
sion had  been  delegated  to  a  committee  previous  to  the  date  of  the  last 
annual  meeting,  and  the  result  of  their  labors  was  duly  submitted  to  the 
Association  and  adopted  on  the  18th  of  March.  This  revision  did  not 
entirely  prove  satisfactory  and  the  rules  were  therefore  further  revised,  and 
with  some  important  modifications,  the  revision  was  re-adopted  on  the  25th 
of  September,  and  no  further  changes  took  place  during  this  year.  Though 
the  code  then  existing  was  not  considered  perfect  it  was  accepted  as  a  com- 
promise. Mr.  Armour  warmly  advocated  the  maintaining  of  the  lake 
marine,  as  the  railroads  in  their  management  were  discriminating  in  the 
carrying  of  freight  against  the  interests  of  Chicago.  And  even  though 
the  railroads  were  most  of  them  bankrupt,  or  fast  becoming  so,  they  were 
formidable  competitors  against  the  great  free  water  communication  with 
the  East  which  nature  has  provided,  arid  says  in  his  annual  report:  "To 
our  lake  marine  we  must  mainly  look.  The  various  interests  centering 
in  Chicago  and  other  lake  cities  could  better  afford  to  subsidize  it  than 
to  see  it  languish  and  die." 

At  the  annual  meeting  held  in  January,  1876,  John  R.  Bensley  was 
elected  President;  D.  H.  Lincoln  tnd  Josiali  Stiles,  respectively,  First 
and  Second  Vice-Presidents.  Mr.  Randolph  and  Mr.  Smith  were  re- 
elected  Secretary  and  Treasurer.  During  this  year  there  were  two  deci- 
sions rendered  by  the  Supreme  Court  where  four  suits  against  the  Board 
by  members  who  had  been  subjected  to  its  discipline,  were  pending,  on 
the  appeal  of  the  parties  against  whom  action  had  been  taken.  These 
decisions  were  in  favor  of  the  Board,  fully  confirming  its  power  to  dis- 
cipline its  members  under  its  own  rules.  The  Circuit  Court  also  adju- 
dicated an  important  question  touching  the  right  to  demand  relief  from 
suspension  by  a  member  of  the  Board,  who  had  been  suspended  for 
failure  to  fulfill  commercial  contracts,  but  who  had  subsequently  applied 
for  and  obtained  a  discharge  in  bankruptcy.  The  court  held  that  such 
discharge  was  not  such  a  satisfactory  adjustment  and  settlement  of  the 
obligations  of  the  bankrupt  as  is  contemplated  by  the  rules  of  the  Board. 
The  Board  had  been  much  annoyed  at  former  periods  bv  petty  suits 
against  members,  wherein  it  was  sought  to  make  the  Board  a  party  by 
garnishment  of  the  membership  of  the  member.  The  Circuit  Court 


22  LAWS  OF  TRADE. 

held  that  such  membership  was  not  subject  to  garnishment.  The  matter 
of  the  necessity  for  some  change  in  the  inspection  of  grain  was  being 
pressed  upon  the  attention  of  the  Board,  which  was  placed  in  the  hands 
of  a  committee  to  examine  into  and  report  thereon. 

At  the  annual  election  held  in  January,  1877,  David  H.  Lincoln  was 
chosen  President;  Josiah  Stiles  and  William  Dickinson  First  and  Second 
^rice-Presidents.  Mr.  Lincoln  has  been  a  member  of  the  Board  for 
more  than  20  years,  and  during  all  that  period  has  been  an  active  parti- 
cipant in  all  matters  that  tended  to  perfect  or  benefit  the  Association,  and  at 
all  times  commanded  the  respect  and  esteem  of  his  business  associates.  At 
this  time  there  appears  to  have  been  a  growing  feeling  of  dissatisfaction 
among  the  "  members  of  the  Board  that  the  cost  of  admission  to  the 
privileges  of  membership  in  the  Association,  which  is  deemed  desirable 
to  all  persons  engaged  in  such  branches  of  business  as  are  usually  con- 
ducted on  'Change  is  quite  inadequate  to  the  benefits  derived  by  parties 
who  desire  to  become  connected  by  membership  in  the  Board."  This 
feeling  was  prompted  from  the  fact  that  "the  organization  had  grown  up 
from  small  beginnings  to  a  commanding  position  in  its  influenoe  as  a 
commercial  body,  and  a  large  number  of  those  who  by  many  years'  devo- 
tion to  its  advancement  may  be  said  to  have  borne  the  burden  and  heat 
•of  the  day  in  its  early  life  and  maturity.  Consequently  the  old  members 
felt  that  new-comers  should  be  required  to  contribute  somewhat  more 
adequately  for  the  benefits  resulting  from  a  perfected  organization,  in- 
dispensable in  the  prosecution  of  the  business  in  which  most  of  the 
members  are  engaged."  However  deeply  this  feeling  may  have  ^im- 
pressed the  membership  of  the  Board,  there  does  not  appear  in  the 
records  that  any  action  had  been  taken  on  the  matter  by  the  Board  of 
Directors.  It  seems  that  there  had  not  been  for  a  year  or  two  any  appli- 
cations for  membership  on  the  Board  by  parties  who  would  make  the 
payment  of  the  regular  initiation  fee.  But  those  parties  who  did  make 
application  for  membership  did  so  with  transfers,  which  had  been  ob- 
tained through  the  decease  of  members  or  from  members  retiring  from 
the  Board,  at  a  much  less  price  than  the  regular  initiating  fee,  which  the 
rules  of  the  Board  permitted.  But,  however  regular  this  may  have  been 
on  the  part  of  applicants  for  membership,  the  "old-timers"  did  not  take 
to  it  kindly. 

At  the  annual  meeting  held  in  January,  1878,  N.  K.  Fairbank  was 
chosen  President;  William  Dickinson  and  John  H.  D wight,  respectively, 
First  and  Second  Vice-Presidents.  Mr.  Randolph  and  Mr.  Smith  were 


BOARD  OF  TRADE.  23 

• 

respectively  elected  Secretary  and  Treasurer.  This  was  a  very 
quiet  year,  nothing  of  importance  having  transpired  to  which  we  have  not 
already  referred.  The  President  of  the  United  States,  Rutherford  B. 
Hayes,  honored  the  Board  with  his  presence  during  the  month  of  Sep- 
tember and  was  received  by  President  Fairbank,  with  an  address  of 
welcome  and  presented  to  the  members,  when  he  addressed  them 
with  an  agreeable  speech  of  a  few  minutes  in  recognition  ot  the  manner 
in  which  he  was  received.  President  Fairbank  is  a  gentleman  of  splen- 
did physique.  Tn  this  respect,  as  in  all  others,  he  admirably  fills  the  po- 
sition he  holds.  He  may  be  numbered  among  our  successful  merchants, 
and  worthily  wears  the  respect  and  esteem  that  is  justly  due  him. 

In  completing  the  mention,  as  we  have  now  done,  of  the  different 
administrations  of  the  Board,  we  deem  it  proper  to  remark  that  it  was 
our  intention  at  the  outset  to  give  a  sketch  of  the  important  occurrences 
or  happenings  in  each  of  the  successive  years  intervening  from  the  incep- 
tion of  this  great  commercial  body  in  the  year  1848,  to  the  present  time. 
Some  few  of  these  years,  as  they  are  herein  sketched,  are  meagre  and 
barren,  in  so  far  as  the  relation  of  events  that  possibly  may  have  occurred 
incident  to  the  history  of  the  Board  of  Trade.  If  such  a  deficiency 
does  exist  to  any  material  extent,  it  should  be  charged  to  the  indifference 
manifested  by  those  who  we  thought  were  the  proper  parties  to  obtain 
such  information  from,  and  to  whom  we  made  courteous  application. 


Chicago  Board  of  Trade  Transactions. 

A  FULL  EXPLANATION  CONCEBNING  TRADING  IN 

"FUTURES," 

(COMMONLY  CALLED  "OPTIONS")  AND 

SHOWING-    HOW    SETTLEMENTS    ABE    MADE. 

ALSO,    AN    IMPORTANT   U.    S.    COURT    DECISION. 


"PUTS   AND   CALLS." 


"FUTURE    DELIVERIES." 

Among-  the  many  matters  of  importance  in  which  members  of  the 
board  engage  and  where  the  transactions  invol veil  are  of  tremendous  mag- 
nitude none  command  more  attention — particularly  in  seasons  of  largely 
fluctuating  values — than  the  "trading  in  contracts  for  the  future  delivery" 
of  grain  and  provisions,  more  commonly  but  very  improperly  called 
"options."  We  say  improperly,  because  the  contract  for  the  property  is 
fixed  and  definite,  and  the  only  feature  in  which  the  trade  is  at  all  op- 
tional is  the  privilege  of  delivery  between  specified  dates,  accorded  to  the 
seller  or  buyer  as  the  trade  may  be  made  "seller  the  month,"  or  "buyer 
the  month."  Almost  the  entirety  of  trading  in  "futures,"  however,  is  in 
contracts  for  "seller  the  month;  the  particular  month  being  always  speci- 
fied. Thus,  when  a  dealer  "on  'Change"  asks  of  another  member  the 
price  of  "May  wheat,"  each  understands  the  question  to  apply  to  the 
price  of  contracts  for  No.  2  Spring  wheat,  deliverable  during  the  month 
of  May,  at  the  option  of  the  seller  as  to  what  day  in  May  he  will  deliver 
the  property.  Trades  in  "buyer  the  month"  are  very  seldom  made  and 
are  almost  obsolete.  The  meaning  of  the  phrase  "buyer  the  month"  is, 
however,  that  the  buyer  can  call  for  the  delivery  of  the  property  on  any 
day  during  May,  or  any  month  for  which  the  contract  may  be  made,  and 
the  seller  is  bound  to  deliver  before  2:30  P.  M.,  on  the  day  the  demand 


BOARD  OF  TRADE.  25 

may  be  made.  On  contracts  for  "seller  the  month,"  the  contract  once 
made,  the  seller  must  deliver  the  property,  and  the  buyer  must  receive 
and  pay  for  it  within  the  time  named  in  the  contract,  unless  the  contract 
shall  have  been  canceled  by  another  offsetting  trade,  or  by  "settlement." 
To  illustrate  the  detail  of  a  trade  in  "May  wheat,"  we  will  suppose 
that  A  buys  from  B  5,000  bushels  of  wheat,  seller  May,  on  'Change  at 
$1.10  per  bushel.  In  the  afternoon  A's  clerk  will  present  to  B  a  contract, 
of  which  the  following  is  the  custom  accepted  and  Board  of  Trade  form, 
which  B  signs  and  the  contract  is  complete: 

FORM    OF    CONTRACT. 


5,000  Bushels  @  $1.10. 

GRAIN  CONTRACT.  Chicago, 187 

I  have  this  day  BOUGHT  of  -B 

five  thousand  bushels  of  No.    2 ....  Spring    Wheat 

at  one  dollar  and  ten  cents  per  bushel,  to  be  delivered  in  store,  at  sel- 
ler's option  during ....  the  month  of  May,  1878, 

To  BE  DELIVEKSD  IN  LOTS  OF  5,000  BUSHELS  EACH. 

This  Contract  is  subject,  in  all  respect",  to  the  Rules  and  Regulations 
of  the  Board  of  Trade  of  the  City  of  Chicago. 


(Signed) 

T 


B  signs  a  similar  contract  using  the  word  "sold"  instead  of  the  word 
"bought."  The  above  contract  calls  for  No.  2  Spring  Wheat.  A  pro- 
vision contract  is  similarly  worded,  only  the  kind  of  property  contracted 
for  is  named. 

By  the  above  contract  it  will  be  observed  that  the  seller  contracts 
positively  to  deliver  a  specified  amount  of  particularized  property.  The 
seller  reserving  the  option  as  to  time  of  delivery,  on  any  day  he  may 
elect  between  the  hour  of  10  A.  M.,  on  May  first,  until  2:30  P.  M.,  on  May 
31st,  and  is  the  only  part  of  the  contract  to  which  the  word  "option"  or 
its  effect  in  any  manner  pertains.  The  property  must  be  absolutely  de- 
livered before  the  expiration  of  the  life  of  the  contract,  unless  otherwise 
settled;  and  in  the  event  of  non-delivery  after  making  a  demand  upon  B 
for  its  delivery,  and  B's  non-compliance,  A  can  buy  the  cash  property 


26  LAWS  OF  TRADE. 

from  any  one  having  it  to  sell,  and  compel  B  to  pay  any  difference  in 
amount  between  such  purchase  price  and  the  price  named  in  the  con- 
tract. There  is  no  evading  or  getting  around  it  on  the  plea  of  its  being 
a  gambling  transaction  as  is  too  commonly  supposed.  The  contract  is  just  as 
vali-1  in  justice,  equity  and  law,  and  as  fair  as  if  B  had  given  his  contract 
to  A  to  deliver  100  cords  of  stone  or  100,000  bricks  to  be  delivered  with- 
in the  time  specified  on  the  wheat  contract,  and  B  is  just  as  absolutely 
liable  to  A  for  damages  resulting  from  the  non-fulfilment  of  his  grain  or 
provision  contract  as  he  would  be  if  he  failed  to  deliver  the  stone  or  the 
brick.  In  a  failure  on  B's  part  to  deliver  the  stone  or  brick,  in  accor- 
dance with  his  contract,  both  common  custom  and  law  would  justify  A 
in  buying  either  of  these  articles  at  che  market  price  as  soon  as  said  con- 
tract had  expired  unfulfilled,  and  A  could  by  law  collect  from  B  any  dif- 
ference in  the  price  he  may  have  to  pay,  beyond  the  named  price  in  the 
contract;  and  the  courts  have  of  late  established  by  several  decisions  the 
absolute  legality  of  time  contracts  for  the  future 'delivery  of  grain  and 
provisions  made  under  Chicago  "Board  of  Trade"  rules,  as  evidenced  by 
the  following  decision  by  the  Supreme  Court  of  Illinois  at  the  September 
term  of  1875  in  the  case  of  Woolcott  et  al.  vs.  Heath  (111.  Reports,  vol. 
78,  page  437).  The  Court's  decision  was  as  follows: 

*  *     "Time  contracts,  made  in  good  faith,  for  the   future   delivery 
of  grain  or  any  other  commodity,  are  not  prohibited  by  the  common  law, 
nor  any  statute  of  this  State,  nor  by  any  policy   beneficial   to  the  public 
welfare.     Such  a  restraint  would  limit  commercial   transactions  to  such  a 
degree   as  could   not   but    be    prejudicial  to  the  best  interests  of  trade. 
Our  present  statute  was  not  in  force  when  these  dealings  were  had;  con- 
sequently the  rights  of  the  parties  are  not  affected  by  it.     What  the  law, 
prohibits,  and  what  is  deemed    detrimental    to   the   public   interests,   is 
speculation  in  differences  in  market  values,  called,  perhaps,  in  the  pecul- 
iar language  of  the  dealers  'puts'  and  'calls,'  which  simply  means  a  privi- 
lege to  deliver  or  receive  the  grain,  or  not,  at  the  seller's  or  buyer's  option. 
It  is  against  such  ficticious,  gambling   transactions,   we   apprehend,   the 
penalties  of  the  law  are  leveled." 

Again,  in  the  case  of  Pixley  et  al.  vs.  Boynton  et  al.,   (79th   111.   Re- 
ports, page  353)  the  Court  rendered  this  opinion  (September  term,  1875): 

*  *     "Seller  the    month,  as  that  term  is  understood    and    used    on 
the  Board  cf  Trade,  is  explained  to  mean  the  seller  has  until  the  last  day 
of  the  month  in  which  to  make  a  delivery  of  any  grain  contracted  to  be 
sold.     Under  such  a  contract,  as  we  understand  the  evidence,  all  the  op- 


BOARD  OF  TRADE.  27 

tion  the  seller  has  is  the  privilege  to  deliver  the  grain  at  any  time  before 
the  maturity  of  the  contract.  This  is  nothing  more  than  a  time  contract, 
which  is  regarded  on  the  Board  of  Trade  and  elsewhere  as  a  legitimate 
and  regular  contract.  Time  contracts  in  relation  to  grain  as  well  as 
other  commodities,  are  of  daily  occurence,  and  must  necessarily  be  in 
commercial  transactions.  *  *  *  The  Intention  of  the  parties  (page 
354)  gives  character  to  the  transaction;  and  if  either  party  contracted  in 
good  faith  he  is  entitled  to  the  benefit  of  his  contract,  no  matter  what 
may  have  been  the  secret  purpose  or  intentions  of  the  other  party." 

The  Supreme  Court  has  never  yet  decided  against  the  validity  or  legality 
of  time  contracts,  and  it  will  be  seen  by  the  following  ruling  that  the  idea 
apparently  so  long  prevalent  among  home  as  well  as  outside  dealers  that 
contracts  for  the  purchase  and  sale  for  future  delivery  were  held  illegal 
by  the  Supreme  Court  of  Illinois,  was  erroneous.  The  summary  of  the 
decision  of  the  Supreme  Court,  recently  rendered,  in  the  case  of  Musics 
&  Brown  vs.  B.  F.  Logan  was  as  follows: 

*  *  "It  is  clear  that  the  parties  were  not  dealing  in  options,  but 
that  the  plaintiffs  were  instructed  to  buy  for  the  defendant  a  certain 
amount  of  grain  for  future  delivery,  and  actually  bought  it.  Under  the 
contract  made  Logan  did  not  have  the  option  to  buy,  but  he  actually  pur- 
chased, and  if  he  failed  to  take  the  grain  at  the  time  he  was  to  receive  it 
he  would  be  bound  to  respond  in  damages.  So  with  the  parties  of  whom 
the  grain  was  bought.  They  did  not  have  an  option  to  sell,  but  actually 
sold  the  grain,  and  were  bound  to  deliver  it  at  the  time  specified,  or,  on 
failure,  would  be  liable  to  damages.  The  statute  does  not  prohibit  a 
party  from  selling  or  buying  grain  for  future  delivery;  such  was  not  the 
purpose  of  the  statutes;  nor  can  it  make  any  difference  as  to  the  legality 
of  the  contract  whether  the  party  who  sells  for  future  delivery,  at  the 
time  the  sale  was  made,  has  on  hand  the  grain;  a  party  may  sell  to-day  a 
certain  quantity  of  grain  for  delivery  in  a  week  or  a  month  hence,  and 
then  go  upon  the  market  and  buy  the  grain  to  fill  the  contract.  It  is 
true  the  defendant  had  the  option  to  select  a  day  within  a  limited  time 
on  which  he  would  receive  the  grain,  but  such  an  option  does  not  fall 
within  the  statutes,  for  the  reason  that  it  does  not  render  the  sale 
optional.  We  are,  therefore  satisfied  that  the  contracts  did  not  fall 
within  the  statute,  and  we  perceive  no  reason  why  they  should  not  be  en- 
forced. The  judgment  of  Circuit  Court  will  be  affirmed." 

The  italics  are  our  own. 

These  decisions  render  collectable  by  law  any  indebtedness   arising 


28  LAWS  OF  TRADE. 

from  dealing  -in  contracts  for  the  future  delivery  of  grain  or  provisions, 
other  opinions  to  the  contrary,  notwithstanding.  Dealing  in  fu- 
tures is,  on  the  part  of  commission  merchants,  a  business  of  unusual  risk, 
unless  said  commission  houses  adhere  strictly  and  inexorably  to  the  idea 
of  "full  cash  margins  absolutely  in  hand"  bjefore  trades  are  begun.  Many 
well  meaning  and  honorably  disposed  commission  men  have  been  utterly 
ruined  by  accepting  and  executing  orders  and  drawing  time  bills  upon 
their  customers  for  the  required  margins,  and,  in  many  instances,  sight 
drafts  have  been  returned  dishonored,  where  the  violent  fluctuations  of 
the  market  have  gone  largely  against  the  party  ordering,  even  before  a 
sight  draft  could  reach  the  party  ordering  the  deal  made,  and  to  whom  it 
would  be  plain  that  whatever  he  might  pay  would  be  dead  loss.  In 
times  of  large  fluctuations  the  market  value  of  grain  may  vary  6c,  8c, 
lOc,  12c,  loc,  and  even  20c  in  a  single  day.  We  will  illustrate  a  case  in 
point.  Mr.  Smith,  of  Charleston,  S.  C.,  may  order  M  &  W  to  buy  for 
him  20,000  bushels  wheat  seller  May,  and  authorize  M  &  W  to  draw  on 
him  for  the  customarv  lOc  a  bushel,  or  $2,000  margin.  M  &  W  may  ex- 
ecute the  order,  say  at  $1.20,  and  make  sight  draft  for  the  amount  of  the 
margin,  say  $2,000.  Foreign  or  other  news  may  come  next  day  and  very 
unfavorably  affect  the  market  as  regards  Mr.  Smith's  interests,  and  a  de- 
cline of  4c  or  5c  be  established  on  the  succeeding  day,  the  markets  may 
still  be  more  unfavorably  affected,  and  prices  again  decline  3c,  4c,  or  5c, 
making,  say  a  total  decline  of  Sc  to  lOo  on  the  third  day.  M  &  Ws 
dratts  would  reach  Charleston  and  be  presented  to  Mr.  Smith,  who  could 
ill  afford  to  lose  the  $2,000,  and  he  being  advised  of  the  decline  by  the 
daily  papers  or  dispatches  from  M  &  W  would  say  to  himself,  "If  I  pay 
the  drafts  I  pay  out  all  the  ready  money  I  have,  artd  will,  of  course, 
know  that  the  amount  f  might  pay  would  be  all  exhausted  by  the  decline 
of  the  last  two  days,  and  besides,  if  I  do  pay,  M  &  W  will  at  once 
want  $2,000  additional  margin,  which  it  is  quite  impossible  for  me  to 
put  up.  I  guess  I  won't  pay,  and  maybe  by  the  time  the  draft  gets  back 
the  market  may  rally,  in  which  event  I  can  order  them  to  redraw,"  but 
the  market  don't  rally.  M  &  Ws  banker  advise  them  that  Mr.  Smith 
don't  pay  his  draft,  and  that  they  must  pay  $2,000  to  the  bank  at  once 
to  make  the  amount  credited  to  them  for  the  draft  good.  M  &  W  will 
then  be  either  compelled  to  sell  the  wheat  out  at  a  loss  and  take  their 
chances  of  collecting  the  balance  from  Mr.  Smith  (which  chance  would, 
of  course,  be  very  remote),  and  not  being  disposed  to  put  up  $2,000  more 
margin  on  a  deal  which  they  have  made  for  Mr.  Smith,  they  reluctantly 


BOARD  OF  TRADE  29 

close  the  trade  by  sale,  pocket  a  $2,000  loss,  make  up  Mr.  Smith's  ac- 
count, send  it  to  him,  request  immediate  remittance,  etc.  Mr.  Smith 
replies:  "Sorry,  but  couldn't  help  it;  ordered  the  wheat  for  a  friend  who 
positively  promised  to  have  the  money  ready  when  the  draft  for  margins 
should  be  presented;  the  friend  had  cruelly  disappointed  him;  would  do 
what  he  could  to  collect;  hoped  that  he  might  soon  have  a  little  money 
he  could  send  them  on  a  trade  as  margin  in  which  he  could  make  back 
the  loss  for  them,  and  would  see  th-it  they  never  lost  a  cent,"  etc.,  etc. 
Weeks,  and  perhaps  months,  would  roll  round.  M  &  W  would  notify 
Mr.  S.  that  he  must  settle  or  they  would  collect  by  suit.  Mr.  Smith 
would  answer  this  time  (not  so  sorry),  and  would  say  "sue  and  be  d — d; 
it's  a  gambling  debt,  and  you  can't  collect  a  cent."  Not  very  honorable  in 
Mr.  Smith,  of  course,  but  that  is  Mr.  Smith's  way,  and  so  the  matter 
would  rest.  During  the  year  M  &  W  might  make  a  dozen  such  losses, 
and  wind  up  at  the  end  of  the  year  with  the  $20,000  capital  originally  in- 
vested in  their  business,  exhausted  in  paying  margins  for  other  people, 
and  finally  be  forced  to  stop  business  because  there  means  were  exhausted 
This  is  simply  the  history  of  hundreds  of  houses  who  have  started  and 
failed  in  the  option  trade  in  Chicago. 


"PUTS  AND   CALLS." 

What  are  commonly  known  as  "Puts"  and  "Calls"  on  the  Board  of 
Trade  are  the  pet  antipathy  of  the  legitimate  dealer,  and  are  regarded 
with  chronic  aversion  by  all  conservative  traders.  They  are  not  recog- 
nized as  legal  by  the  Statutes  of  the  State,  and  "differences"  resulting 
from  trades  based  thereon  are  not  collectable  under  Board  of  Trade 
rules.  Within  the  past  year  they  have  been  exorcised  from  the  "Rooms" 
of  the  "Board"  and  trading  in  them  by  members,  in  the  "Main  Hall"  or 
during  regular  'Change  hours  is  forbidden  under  penalty  of  fine  or  ex- 
pulsion; and  yet,  however  illegal  or  irregular  they  may  be,  the  volume  of 
trading  done  in  them  after  the  regular  session  of  the  Board,  amounts 
to  hundreds  of  thousands  of  bushels  daily,  and  compassing  as  many  hun- 


30  LAWS  OF  TRADE. 

dreds  of  thousands  of  dollars  in  value.  There  being  no  legal  responsi- 
bility, they  are  made  entirely  "on  honor,"  as  no  member  of  the  Board 
can  enter  complaint  against  another  member  to  the  directory  for  default- 
ing upon  a  "privilege,"  I.  e.  a  "put"  or  "call,"  nor  upon  any  deal  based 
upon  a  "privilege."  To  many  of  our  readers  these  terms  are  mean- 
ingless without  further  explanation,  and  it  will  now  be  our  province  to 
attempt,  at  least,  to  make  clear  the  detail  incident  to  privilege  trading. 
A  "put"  means  that  the  seller  thereof  sells  to  the  buyer  thereof  the 
privilege  of  having  delivered  to  himself  (the  seller)  by  the  buyer  5,000 
bushels  of  any  named  grain,  at  any  stated  price,  and  for  any  stated  time 
of  delivery.  To  make  this  more  clear  we  will  illustrate  by  supposing 
that  A  sells  to  B  a  "put,"  that  is,  A  sells  to  B  the  privilege  of  putting  or 
delivering  to  him  (A)  5,000  bushels  of  May  wheat  on  the  succeeding  day 
for  $10,  at  $1.09  per  bushel.  If  the  price  did  not  go  below  $1.09  the 
next  day,  B  would  not  "put"  the  wheat  as  there  would  be  no  profit  in  so 
doing,  but  he  (B)  would  lose  the  $10  he  paid  A  for  the  "put."  If,  how- 
ever, the  market  should  decline  to  $1.07  the  next  day,  B  could  then  buy 
5,000  bushels  May  wheat  of  C  or  any  other  party  at  $1.07  and  deliver  it 
to  A  on  his  "put"  at  $1.09  and  would  therefore  secure  a  profit  of  2c.  per 
bushel  or  $100,  making  a  clear  gain  of  $90,  $10  having  been  paid  for  the 
"put."  The  life  of  a  "put"  extends  only  until  the  close  of  'Change  hours 
on  the  day  succeeding  the  one  on  which  the  purchase  of  the  privilege  or 
"put"  is  made,  unless  a  more  extended  time  is  agreed  upon  between  the 
contracting  parties.  A  "call"  is  quite  similar  in  results.  We  will  sup- 
pose that  to-day  A  sells  to  B  a  "call"  on  May  wheat  for  to-morrow  for 
the  usual  $10  at  say  $1.10£.  The  morrow  comes  and  wheat  advances  to 
$1.12.  At  any  time  during  the  day  B  can  sell  5,000  bushels  of  wheat  at 
$1.12  and  '-call"  A  to  deliver  at  the  $1.10^- the  agreed  "call"  price.  The 
moment  B  "calls"  the  wheat  he  becomes  the  buyer  of  it  at  the  "call" 
price,  and  if  he  can  sell  it  at  $1.12  he  can  secure  a  -profit  of  Ifc.  per 
bushel  or  $75  less  the  $10  he  has  paid  for  the  "call."  The  "put"  or  "call' 
is  secured  simply  by  the  buyer  notifying  the  seller  verbally  or  by  proxy 
any  time  before  the  bell  strikes  the  3:30  P.  M.  hour. 

The  difference  between  a  "put"  or  a  "call"  and  a  regular  trade  in 
"futures"' is  simply  this:  In  buying  for  "future  delivery"  an  absolute  con- 
tract is  made  to  deliver  or  secure  a  certain  amount  of  specified  property 
at  a  stipulated  price.  If,  however,  you  buy  a  "put"  or  "call"  you  simply 
buy  the  privilege  of  delivering  or  receiving  the  property.  It  being  en- 
tirely optional  with  the  purchaser  of  the  "privilege"  whether  he  makes  a 


BOARD  OF  TRADE.  31 

positive  trade  or  not,  and  while  it  is  clearly  a  misnomer  to  apply  the 
word  "option"  to  a  contract  for  future  delivery,  it  is  quite  as  clearly  the 
proper  title  to  apply  to  a  trade  in  a  "privilege,"  i.  e.  a  "put"  or  a  "call." 
.These  privileges  are  largely  dealt  in  by  operators  in  "futures,"  who  use 
them  as  "insurance"  on  their  legitimate  trades,  i.  e.  protection  against 
loss  beyond  the  figure  named  on  the  "put"  or  "call"  trade.  This  we  will 
illustrate  by  supposing  that  A  having  bought  50,000  bushels  of  wheat 
during  the  day  at  say  $1.10  for  "May,"  and  being  a  little  nervous  about 
his  margin  drafts  not  being  paid,  or,  if  on  his  own  account,  desires  to 
lose  not  over  Ic.  per  bushel  in  the  event  of  the  decline,  he  would  insure 
himself  against  more  than  the  Ic.  per  bushel  loss  by  buying  after  regular 
'Change  hours  a  "put"  on  50,000  bushels  May  wheat  from  B,  C  and  D,  at 
$1.09;  he  could  then,  in  tha-event  of  a  decline  below  $1.09,  deliver  the 
wheat  on  the  "puts"  he  has  on  B,  C  and  D,  and  thus  prevent  loss  beyond 
that  amount  plus  the  amount  he  may  have  paid  for  the  "puts;"  and  on 
the  other  hand,  if  A  should  be  short  50,000  bushels  of'  wheat  at  $1.10,  he 
could  protect  himself  from  a  loss  of  more  than  Ic.  a  bushel  by  purchasing 
from  B,  C  and  D  50,000  bushels  of  "calls"  on  May  wheat  at  say  $1.11  for 
next  day,  and  in  the  event  of  the  market  advancing  to  $1.12,  or  over,  he 
would  be  "insured"  against  more  than  Ic.  per  bushel  loss  by  "calling" 
on  B,  C  and  D  to  deliver  to  him  the  50,000  bushels  on  the  "calls"  bought 
of  them,  which  he  could  in  turn  deliver  to  the  parties  he  might  sell  to  at 
$1.12  or  over.  The  following  ruling  indicates  the  position  of  our  courts 
in  regard  to  the  legality  of  "puts"  and  "calls,"  or  "privileges:" 

In  the  case  of  Pickering  et.  al.  vs.  Chase  (79th  111.  Reports,  page  328) 
the  Court  decided:  "A  contract  for  the  sale  and  future  delivery  of  grain, 
by  which  the  seller  has  the  privilege  of  delivering  or  not  delivering,  and 
the  buyer  the  privilege  of  calling  or  not  calling  for  the  grain,  just  as  they 
choose,  and  which  on  its  maturity  is  to  be  filled  by  adjusting  of  differ- 
ences in  market  value,  is  but  an  optional  contract  in  the  most  objection- 
able sense,  and,  being  in  the  nature  of  a  gambling  transaction,  the  law 
will  not  tolerate  it." 

From  the  above  it  will  be  seen  that  the  Supreme  Court  has  never 
decided  against  the  validity  of  option  contracts.  The  decisions  (as  per 
last  quoted)  have  been  against  "puts"  and  "calls,"  and  the  Chicago  Board 
cf  Trade,  like  the  Supreme  Court,  disclaims  these  latter  as'  illegitimate 
transactions.  Thus  it  will  be  seen  that  the  idea,  apparently  so  long  pre- 
valent among  home  as  well  as  outside  dealers,  that  all  contracts  for  the 
purchase  and  sale  for  future  delivery  were  held  illegal  by  the  Supreme 


LAWS  OF  TRADE. 

Court  of  Illinois,  was  erroneous — the  Court  merely  said  that  "puts"  and 
"calls"  are  gambling  operations. 

The  usual  difference  in  price  on  "puts"  and  "calls,"  on  what  on  a 
steady  market  is  usually  from  $  to  Ic.  per  bushel  from  the  closing  price 
on  the  Board.  Thus  if  "May  wheat"  closes  at  $1.10,  the  price  of  "calls" 
on  an  ordinary  quiet  market  would  be  from  $1.10£  to  $1.11,  and  the 
price  of  "puts"  from  $1.09£  to  $1.09.  In  seasons  of  violent  fluctuations, 
however,  a  wider  range  of  prices  obtains,  and  the  "put"  or  "call"  value 
will  be  1,  2,  3  or  even  5c.  per  bushel  above  or  below  the  closing  prices 
on  'Change.  Our  illustrations  are  based  upon  the  average  ruling  differ- 
ences on  a  steady  market. 

These  privileges  are  often  bought  and  sold  for  much  longer  terms 
than  the  succeeding  day,  and  occasionally  extend  fifteen,  thirty  and  even 
sixty  days.  The  prices  at  which  these  extended  privileges  are  made, 
vary  largely,  and  in  proportion  to  the  time  compassed,  a  "call"  for  buyer 
"the  month"  usually  commands  a  premium  of  5  to  lOc.  per  bushel  from 
the  ruling  value  on  the  day  the  "call"  is  sold,  and  about  the  same  differ- 
ence on  a  "put"  for  the  same  period. 


"OPTION    TRADING." 

SETTLEMENTS    AND    MARGINS. 

To  parties  who  are  not  familiar  with  the  "deal,"  one  of  the  most 
puzzling  features  incident  to  trading  in  options  (i  e.  contracts  for  future 
delivery)  is  the  modus  operandi  of  making  settlements  or  "ringing  the 
deals"  as  it  is  more  commonly  designated.  Strangers  visiting  the  Board 
of  Trade  will  notice  around  and  near  a  long  upright  desk,  at  the  north- 
east end  and  side  of  the  room,  around  and  near  which  during  'Change 
hours,  quite  a  crowd  of  lads  and  some  aHuIts  congregate,  and  who  are 
constantly  calling  out  the  names  of  the  different  firms  who  trade  in 
"options,"  and  who  are  constantly  comparing  entries  in  small  memoran- 
dum books  which  they  carry,  with  each  other,  and  who  will  be  heard 
remarking  as  they  conclude  their  calculations:  "You  pay  A  $175  and 


BOARD  OF  TRADE.  33 

collect  $37.50  from  C,"  or  "All  right,  we  pay  $62.50,"  etc.  etc.,  which  is 
all  Greek  to  the  looker  on  and  understandable  only  by  those  who  are 
engaged  in  the  option  trade.  We  will  endeavor  to  make  plain,  as  briefly 
as  possible,  how  settlements  are  made:  First  of  all  it  must  be  undertsood 
that  the  trading  in  option  deals  in  grains  and  provisions  is  always  for  lots 
of  5,000  bushels  each,  and  in  pork  and  lard  for  250  packages  of  either; 
any  amount  other  than  these  are  irregular  trades  and  seldom  made,  and 
when  made  can  never  be  settled  unless  settled  direct. 

It  is  easy  enough  to  understand  that  if  A  buys  5,000  bushels  of  May 
wheat  from  B  to-day  at  $1.06  and  sells  it  to  B  to-morrow  or  next  week  at 
$1.07  that  B  will  owe  A  1  cent  a  bushel  or  $50,  and  that  the  two  trans- 
actions settle  each  other's  books,  so  far  as  this  trade  is  concerned.  But 
suppose  A  buys  5,000  bushels  of  May  wheat  (i.  e.,  wheat  deliverable  at 
seller's  option  any  time  during  May)  from  B  to-day  at  $1.06;  then  let  it  be 
supposed  that  A  wishes  to  close  his  trade  to-morrow,  but  that  B  wishes 
to  let  his  deal  stand — don't  want  to  sell.  Then  A  must  sell  to  some  other 
party,  which  he  does,  and  sells  5,000  May  wheat  to  C  at  $1.08.  This  sale 
made,  A's  books  will  be  even,  so  far  as  the  amount  of  wheat  is  concerned^ 
that  is,  he  will  have  5,000  bought  and  5,000  bushels  sold,  but  he  will  have 
two  deals  open,  5,000  bought  of  B  and  5,000  sold  to  C.  The  next  move 
to  be  made  is  to  "settle"  or  "ring"  the  deals,  and  clear  them  from  the 
books.  This  may  be  done  when  B  buys  5,000  bushels  wheat  from  C,  or  from 
any  party  who  may  have  sold  it  to  A.  Let  us  suppose  that  a  few  days 
thereafter  B  does  buy  from  C  5,000  bushels  of  May  wheat  at  $1.08|-;  as 
soon  as  these  trades  are  made  they  are  reported  to  the  settling  clerks, 
who  are  continually  comparing  purchases  and  sales,  and  it  is  found  that 
B  has  bought  the  5,000  bushels  from  C;  a  ring  is  at  once  made,  and  it 
will  stand  as  follows  on  the  settlement  books  of  each,  viz: 

A  bought  of  B  5,000  bu.  May  wheat  at  $1.06.  B  bought  of  C  5,000 
bu.  May  wheat  at  $1.08.  C  bought  of  A  5,000  bu.  May  wheat  at  $1.08£. 
A  collected  $100  from  B  and  $25  from  C.  B  collects  $25  from  C.  By 
the  above  it  will  be  seen  that  A  has  made  $125  profit,  and  that  C  loses 
$25  and  B  loses  $100,  and  the  trades  are  entirely  cleared  from  the  books 
of  each  party,  whereas  each  party  had  5,000  bu.  bought  and  5,000  bu. 
sold  on  their  respective  books  until  the  "ring"  or  settlement  was  made. 
These  settlements  often  compass  five,  seven,  ten,  and  sometimes,  though 
seldom,  twelve  or  fifteen  different  firms  before  the  ring  is  complete.  We 
will  give  one  more  illustration  of  a  larger  "ring,"  comprising  say  seven 
different  parties,  and  which  we  will  suppose  to  be  in  corn,  viz:  A  buys 


34  LAWS  OF  TRADE. 

5,000  bu.  April  corn  at  42c.  of  B.     B  buys  5,000  bu.  of  C  at  41^0.     C 
buys  5,000  bu.  of  same  option  of  D  at  43c.     D  buys  same  amount  of  E 
at  44c.     E  buys  5,000  of  F  at  44£c,  and  F  may  in  a  da  7  or  two  buy  5,000 
of  A  at  44c.     The  settlement  clerks  in  the  half- hourly  comparisons  wou'd 
readily  discover  the  ring  and  proceed  to  close  "he  'rades  up.     The  mem- 
orandum on  the  settlement  books  would  show  as  follows: 
A  bought  of  B  5,000  bu.  April  corn  at  42c. 
B  bought  of  C  5,000  bu.  April  corn  at  41£c;  B's  gain,  $25. 
C  bought  of  D  5,000  bu.  April  corn  at  43c;  C's  loss,  $75. 
D  bought  of  E  5,000  bu.  April  corn  at  44c;  D's  loss,  $50. 
E  bought  of  F  5,000  bu.  April  corn  at  44£c;  E's  loss,  $25. 
F  bought  of  A  5,000  bu.  April  corn  at  44c;  F's  gain,  $25. 
A  having  bought  at  42c  and  sold  at  44c,  gains  $100. 
In  the  above  transactions  the  party  making:  the  largest  profit  would, 
as  a  rule,  collect  from  all  loosers  in  the  "ring"  and  pay  those  who  have  a 
profit  besides  themselves.     In  the  above  A  would  collect  $75  from  C,$50 
from  D,  and  $25  from  E,  making  a  total  of  $150,  and  would  pay  B   $25 
and  F  $25,  leaving  the  $100  gained  in    hand,  and   the  books   of  all    the 
parties  interested  would  be  cleared  of  the  trades  named. 

All  members  of  the  board  are  expected  to  pay  the  balances  they 
may  owe  the  day  the  settlement  is  made,  or  at  farthest  on  the  next  day 
The  failure  on  the  part  of  any  member  of  the  Board  to  pay  balances 
due  on  settlements  on  demand  renders  such  member  liable  to  suspension 
from  the  privileges  of  the  Board  immediately  upon  the  complaint  of  the 
party  unpaid. 

One  of  the  most  unpleasant  positions  that  option  traders  find  them- 
selves in  occasionally,  is  to  have  large  deals  out  with  "one-sided"  opera- 
tors— those  whose  trades  may  be  entirely  on  either  the  bull  or  the  bear 
side.  To  show  how  awkwardly  unpleasant  such  a  situation  may  be  made 
to  a  trader  in  options  who  happens  to  get  long  to  a  one-sided  "short" 
and  short  to  a  one-sided  "long,"  operator,  we  will  suppose  that  A,  a 
commission  merchant,  one  who  does  a  strictly  commission  business  in 
"futures,"  receives  to-day  an  order  from  John  Jones,  of  Jonesville,  to 
buy  for  his  account  100,000  bu..of  May' wheat  at  the  market  value,  and 
remits  to  A  $10,000  margin.  A  at  once  goes  into  the  market  and  may  buy 
to  the  extent  of  40,000  bu.  of  May  wheat  of  Y,  a  strong  believer  in 
lower  prices,  at  $1.06,  and  60,000  bu.  ot  same  option  of  H,  another  large 
dealer  and  prominent  operator,  also  on  the  bear  side,  at  $1.06^.  In  the 
course  of  a  day  or  two  Mr.  Jones,  of  Jonesville,  by  an  advance  in  prices, 


BOARD  OF  TRADE.  35 

being  abls  to  realize  a  profit  of  2c  per  bu.  orders  A  to  "sell  his 
wheat."  Upon  receipt  of  Mr.  J's  order  A  at  once  offers  and  sells  at  say 
II  08  50,000  bu.  to  Mr.  A  heavy  dealer  on  the  bull  side,  and  50,000  bu. 
to  F,  another  heavy  bull  operator,  at  $1.08^.  This  being  done,  A  makes 
up  Mr.  Jones' account,  remits  him  his  $10,000  margin,  and  the  $2,000 
profit,  less  his  (A's)  commission  of  $250.  This  lets  Mr.  Jones  out  of  the 
deal,  but  A  has  200,000  bu.  of  unsettled  wheat  deals  on  his  books.  The 
bears,  Y  and  H,  of  whom  he  bought  the  wheat,  still  believing  that  lower 
prices  must  prevail,  decl'ne  to  buy  any  wheat,  and  M  and  F  continuing 
firm  in  their  convictions,  refuse  to  sell  a  bushel.  A,  therefore,  is  unable 
to  settle  a  bushel  of  either  his  "bought"  or  his  "sold"  wheat.  A  decline 
of  4c  or  5c  may  now  occur,  and  Y  and  H  finding  the  deal  going  in  their 
favor,  and  against  A,  call  on  him  to  deposit  lOc  a  bu.  margin,  or  $10,000. 
This  $10,000  must  be  put  up  within  one  hour  after  the  call  is  made,  ac- 
cording to  the  established  rules  of  the  Board,  and  is  promptly  deposited 
by  A,  who  can  in  turn  call  Y  and  H  and  force  them  to  deposit  a  similar 
amount.  The  decline,  however,  makes  A's  sale  to  M  and  Y  against  them 
and  in  his  favor,  and  he  accordingly,  as  a  prudent  man,  calls  on  them  to 
deposit  lOc  a  bu.  margin,  or  $10,000,  which  they  do,  and  as  is  their  right, 
call  back  upon  A  to  put  up  a  like  amount,  which  he  is  necessitated  to  do 
within  the  specified  hour.  This  makes  a  total  of  $20,000  margin  A  has 
been  forced  to  deposit  on  the  trades  he  has  made  for  Mr.  Jones,  of  Jones- 
ville,  and  Mr.  Jones'  margins  and  profits  have  b^en  paid  him,  and  so  far 
as  Mr.  Jones  is  concerned  the  trade  closed,  while  A  has  some  200,000 
bushels  of  wheat  on  his  books  that  can't  be  settled,  and  his  $20,000 
margin  must  remain  up,  until  it  can  be  settled  by  Y  and  H  buying  May 
wheat  or  M  and  F  selling.  In  the  event,  of  neither  of  these  parties 
changing  their  opinions,  and  continuing  to  stand  on  their  trades,  A  will 
have  to  wait  until  the  maturity  of  the  May  option  contract  comes  round, 
when  Y  and  H  will  be  compelled  to  deliver  him  the  cash  wheat  he  has 
bought  from  them,  "seller  May,"  and  which  he  can  in  turn  deliver  to  M 
and  F,  and  thus  close  the  deal  with  both  parties  by  the  delivery  of  the 
cash  wheat.  Margins  mu*t  be  put  up  within  one  hour  after  being  called,  if 
the  call  is  made  before  2  o'clock  P.  M.;  if  made  after  2  P.  M.,  it  must  be 
up  by  11  A.  M.  next  day.  The  failure  to  respond  to  a  call  for  margin  is 
generally  considered  a  failure  in  fact,  and  so  acted  upon  by  the  parties 
interested.  The  rule  relating  to  margins  we  here  annex.  It  reads  as 
follows: 


36  LAWS  OF  TRADE. 

RULE  XXIII. 

MARGINS   ON   TIME   CONTRACTS. 

SECTION  1.  On  time  contracts  purchasers  shall  ha^e  the  right  to 
require  of  sellers,  as  security,  ten  (10)  per  cent,  margins  based  upon 
the  contract  price  of  the  property  bought,  and  further  security,  from 
time  to  time,  to  the  extent  of  any  advance  in  the  market  value  above 
said  prices.  Sellers  shall  have  the  right  to  require  as  security  from 
buyers  ten  (10)  per  cent,  margins  on  the  contract  price  of  the  property 
sold,  and  in  addition  any  differences  that  may  exist  or  occur  between  the 
estimated  legitimate  value  of  any  such  property  and  the  price  of  sale. 
All  securities  or  margins  shall  be  deposited  either  with  the  Treasurer  of 
'  the  Association  or  with  some  bank  duly  authorized  by  the  Board  of 
Directors  to  receive  such  deposits;  provided,  s"uch  deposit  shall  not  be 
made  with  any  bank  or  banks  to  which  the  party  calling  for  the  said 
security  or  margir  shall  expressly  object  at  the  time  of  making  such 
a  call. 

The  first  of  the  month  (Sundays  excepted)  is  usually  quite  an  exciting 
day  in  the  vicinity  of  the  Board  of  Trade  building,  in  consequence  of 
the  large  deliveries  of  grain  and  provisions  that  are  generally  made  on 
that  day.  To  illustrate:  A  having  sold  B  5,000  bushels  March  wheat,  he 
(B)  can,  on  the  first  of  March,  or  any  day  during  the  month,  deliver  it, 
and  those  dealers  who  have  received  cash  property  during  February  gen- 
erally deliver  on  March  1  on  such  "sold"  contracts  as  they  may  have  out 
"seller  March,"  unless  they  are  on  the  bull  sHe  at  the  time,  in  which 
event  they  would  prefer  to  carry  it,  so  as  not  to  affect  the  market  unfa- 
vorably, by  letting  the  property  out.  One  5,000  bushel  lot  of  wheat  may 
be  made  to  fill  a  dozen  sales  within  an  hour  after  it  is  put  out.  The  de- 
liveries must  be  made  by  or  before  2:30  P.  M.;  if  such  delivery  is  not 
made  before  2:30  P.  M.  the  purchaser  can  refuse  to  receive  the  grain, 
pork,  or  lard,  as  the  case  may  be,  until  next  day.  As  a  consequence,  on 
the  first  of  the  month,  between  2  P.  M.  and  2:30  P.  M.  there  is  unusual 
excitement  in  the  vicinity  named,  caused  by  the  delivery  clerks  flying 
along  the  streets  with  the  bills  and  warehouse  receipts  to  complete  these 
deliveries  before  the  2:30  P.  M.  bell  may  strike.  Their  progress  is  often 
much  impeded  by  the  crowd  standing  on  the  sidewalks  to  see  the  fun, 
and  personal  collisions  are  not  infrequent,  and  when  they  occur  are  gen- 
erally severe  and  occasionally  serious.  The  moment  the  bell  strikes  the 


BOARD  OF  TRADE.  37 

2:30  hour  no  more  tenders  can  be  made,  and  the  delivery  clerks  are  often 
"stuck,"  much  to  their  chagrin,  by  being  but  one-quarter  of  a  minute  too 
late,  and  the  discomfited  youth  retires  somewhat  chop-fallen  amid  the 
jeers  of  the  crowd,  which  heartily  applauds  those  who  are  just  in  time  to 
be  successful  in  completing  the  delivery,  and  who  quite  as  heartily  "cod" 
with  groans  and  hand-clapping  the  unfortunate  wight  who  is  just  in  time 
to  be  "out  of  time." 

The  following  is  the  form  of  certificate  issued  by  the  banks  receiving 
margin  deposits: 

CHICAGO, 18     . 

-. has  deposited  with  this  Bank 

Dollars,  as  margin  or  security  on  a 

contract  or  contracts  between  the  depositor  and 

which  amount  is  payable  on  the  return  of  this  certificate  or  its  duplicate 
duly  endorsed  by  both  of  the  above-named  parties,  or  on  the  order  of  the 
President  of  the  Board  of  Trade  of  the  city  of  Chicago,  indorsed  on 
either  the  original  or  duplicate  hereof,  as  provided  by  the  rules  of  said 
Board  of  Trade,  under  which  the  above-named  deposit  has  been  made. 

,  Cashier. 


A  FEW  REMARKS  CONCERNING  OPTION  TRADING. 

Trading  in  "options"  or  contracts  for  the  delivery  of  grain  or  pro- 
visions at  periods  subsequent  to  the  date  of  the  contract,  at  the  option 
of  the  seller  or  buyer,  is  a  business  to  which  a  considerable  number  of 
the  heaviest  and  most  responsible  firms  on  the  Board  of  Trade  devote 
almost  their  entire  attention.  The  word  "option"  is,  strictly  speaking, 
a  misnomer.  However,  as  the  word  (incorrect  as  it  may  be)  is  most  com- 
monly used  among  dealers  in  "futures,"  we  will  accept  the  custom  and 
use  the  word  "option"  in  our  explanations  which  we  herein  propose 
to  give.  The  value  of  business  transacted  in  active  seasons,  in  this  line, 
is  simply  enormous,  the  dealings  of  single  firms  amounting  to  a  million 
or  more  dollars  in  value  in  a  single  day. 


38  LAWS  OF  TRADE. 

Of  the  nineteen  hundred  members  of  the  Chicago  Board  of  Trade 
it  is  safe  to  assert  that  at  least  three-fourths  of  the  entire  membership 
operate  either  for  themselves  or  on  commission  for  others.  Owing  to 
the  violent  fluctuations  of  the  market  at  times,  the  business  is  attended 
with  more  than  the  usual  amount  of  the  risk,  and  the  greatest  amount 
of  care  is  essential  on  the  part  of  commission  merchants  trading  for 
country  parties,  in  the  closing  of  deals  before  the  expiration  of  the  cus- 
tomary margins  consequent  upon  the  fluctuations  of  the  market,  which 
rarely  remains  at  the  same  figure  a- quarter  of  an  hour  at  a  time  for"  a 
whole  week,  and  during  the  week  often  fluctuates  several  cents  per 
bushel  on  grain,  and  fifty  cents  to  one  dollar  a  barrel  on  mess  pork. 

In  moments  of  these  violent  changes  in  values,  the  excitement  is 
almost  indescribable,  and  the  frantic  buyers  and  sellers,  to  an  outsider  at 
such  times,  have  mere  the  appearance  of  so  many  hundred  lunatics, 
rather  than  the  quickest  thinking  business  men  of'  the  country. 

A  very  large  amount  of  business  is  done  in  this  market  in  "option 
trading."  we  herewith  give  an  explanation  of  such  business  transactions: 

'•'Option  Deals"  are  the  result  of  a  desire  on  the  part  of  operators 
and  dealers  to  buy  grain  or  provisions  for  a  rise,  or  sell  for  a  decline,  in 
the  future,  and  the  regular  rule  is  to  bay  or  sell,  "seller  the  month,"  or 
any  future  month. 

The  following  are  the  terms  used  and  an  explanation  of  their  mean- 
ing as  generally  unders'ood  by  the  trade 

A  "Buyar's  Option"  gives  the  buyer  the  right  to  demand  from  the 
seller  the  delivery  of  the  property  bought,  any  day  during  the  time 
specified  in  the  .contract,  and  when  not  demanded  the  seller  can  and 
must  deliver  before  2:30  o'clock  of  the  last  day  of  the  life  of  the 
option, 

A  "Seller's  Option"  gives  the  seller  the  right  to  deliver  the  property 
sold,  any  day  during  the  time  specified  in  the  contract,  and  he  must 
deMver  it  before  2:30  o'clock  P.  M.  of  the  last  day  of  the  life  of  the. 
option. 

To  secure  the  faithful  carrying  out  of  these  contracts,  margins  not 
exceeding  10  per  cent,  upon  the  value  of  the  property  specified  in  the 
contract,  may  be  demanded  by  both  buyer  and  seller  at  the  time  the 
trade  is  made,  or  subsequently;  and  thereafter  during  the  continuance 
of  the  contract  the  seller  may  require  the  buyer  to  keep  good  10  per 
cent,  margin  below  the  shipping  value  of  the  property,  and  the  buyer 


BOARD  OF  TRADE.  39 

may  require  the  seller  to  keep  good  10  per  cent,  margin  above   the   cur- 
rent value  in  this  market. 

Margins  must  be  deposited  in  a  bank  which  has  filed  sufficient  bonds 
with  the  Board  of  Trade,  within  one  banking  hour  after  they  are  called, 
(provided  the  call  is  made  before  11  A.  M.,  and  if  made  at  or  after  11 
A.  M.  the  party  called  upon  has  until  2  P.  M.,  the  time  between  11  A. 
M.  and  1  o'clock  P.  M.,  being  the  regular  change  hours,  is  exempted 
from  the  rule  of  one  hour  as  above)  the  bank  giving  its  receipt  for  the 
amount  so  deposited,  payable  to  the  order  of  the  buyer  and  seller  jointly, 
which  receipt  requires  the  indorsement  of  both  parties  to  the  contract 
upon  being  surrendered. 

Contracts  are  made  to  cover  any  length  of  time  ahead;  but,  without 
waiting  the  maturity  of  a  contract,  it  can  be  closed  by  the  commission 
merchant  making  a  purchase  if  "short,"  or  a  sale  if  "long,"  and  thus  a 
trade  can  be  closed,  at  the  dealer's  option,  any  time  between  the  date 
and  maturity  of  the  contract.  But  little  capital  (margins  only)  is  re- 
quired, and  no  expense,  save  commissions,  attach  to  option  trades.  The 
requisite  margin  generally  required  by  the  commission  merchant,  and  ex- 
pected by  him  to  be  kept  good  in  case  of  adverse  change  in  the  market, 
is  10  per  cent,  of  the  market  valuation,  or  such  an  amount  as  may  be 
agreed  upon  between  the  commission  merchant  and  his  customer.  The 
commission  merchant,  however,  is  at  all  times  liable  to  be  galled  the  full 
10  per  cent,  of  the  face  value  of  the  contract,  and  can  be  compelled  to 
put  up  that  amount  on  one  hour's  notice,  and  also  such  further  amount 
as  the  fluctuations  of  the  market  may  increase  that  liability. 

All  grain  is  sold  during  summer  storage  (from  April  15  to  November 
15)  subject  to  1^  cents,  and  during  winter  storage  subject  to  4  cents  per 
bushel  storage,  and  the  receipts  on  delivery  must  have  five  days  to  run. 

Winter  storage  commences  November  15  and  ends  April  15.  All 
grain  except  "Rejected"  and  "No  Grade,"  in  store  or  received  between 
these  dates,  after  4  cents  storage  has  accrued  on  it  will  be  subject  to  no 
further  charges  until  after  April  15. 

As  the  parties  who  finally  take  the  grain  out  of  store,  pay  the  full 
storage  to  the  elevators,  dealers  can,  therefore,  hold  grain  here  all  through 
winter  storage,  or  any  length  of  time  between  November  15  and  April 
15,  free  of  storage,  if  they  sell  in  this  market. 

The  commissions  on  option  deals,  which  include  both  buying  and 
selling,  are  one-quarter  cent,  per  bushel  on  grain  in  5,000  bushel  lots;  and 
one-half  per  cent,  on  provisions  in  lots  of  not  less  than  $2,000  in  value. 


40  LAWS  OF  TRADE. 

No  further  expense  is  incurred,  unless  the  commission  merchant  is  re- 
quired to  pay  for  and  carry  the  property,  in  which  case  it  turns  into  a 
cash  deal,  in  which  event  an  extra  commission  is  usually  charged. 

To  commission  men  we  would  remark  right  here,  by  way  of  warn- 
ing, a  suggestion  or  two,  which,  if  carefully  regarded,  will  prevent 
trouble. 

The  risks  attending  this  line  of  business  are  much  greater  than  in 
handling  cash  property,  and  it  behooves  all  careful,  prudent  men  that 
they  look  to  it  closely,  that  all  option  trading  be  initiated  and  closed  upon 
the  safest  conservative  business  basis. 

In  all  cases,  without  exception,  require  your  margins  absolutely  in 
hand  before  opening  a  trade.  In  filling  orders  for  parties  residing  out 
of  the  city,  require  of  them  at  the  time  when  they  forward  an  order  to 
buy  or  se'l,  to  deposit,  with  a  responsible  bank,  the  required  margin  sub- 
ject to  your  order;  and  instruct  the  cashier  thereof  to  notify  you  of  the 
receipt  of  such  deposit  by  telegraph,  and  in  no  case  open  a  trade  until 
such  notification  be  received.  If  parties  order  a  trade  made  and  say 
they  will  remit  by  mail,  be  sure  that  the  parties  are  men  of  their  word 
and  will  do  as  they  agree.  Do  not  be  so  anxious  to  do  business  as  to 
accept  margins  that  are  too  small.  The  folly  of  attempting  to  operate 
on  attenuated  or  too  meagre  margins  is  too  obvious  to  be  discussed.  The 
majority  of  the  failures  that  occur  on  the  Board  of  Trade  can  be  mainly 
traced  to  the  fact  that  too  much  trading  has  been  done  on  too  small 
margins.  Make  it  your  duty  for  your  own  protection,  as  well  as  for  the 
protection  of  your  reliable  customers,  to  discourage  "over-trading"  by 
always  requiring  full  and  ample  margins  from  all, 

EXPENSES. 

Expenses  attending  the  buying  and  shipping  of  grain.  Storage, 
which  must  be  paid  by  the  shipper  upon  all  kinds  of  grain,  when  drawn 
from  store — between  the  15th  of  April  and  15th  of  November — is  l^c  per 
bushel,  and  during  the  balance  of  the  year — say  from  the  15th  of  Novem- 
ber to  the  15th  of  April — 4c  per  bushel.  Upon  all  grain  shipped  by 
lake,  the  charges,  other  than  for  storage  as  above,  are  fire  insurance 
(during  the  time  of  loading),  say  2  days  at  lOc  per  $100;  marine  insu- 
rance varying  according  to  time  of  year,  from  £  per  cent,  to  3  per  cent. 
Inspection  aboard — say  25c  per  1,000  bushels,  and  commissions — and  upon 
all  grain  shipped  by  railroad  from  store,  the  charges,  other  than  for 


BOARD  OF  TRADE.  41 

storage,  are,  for  fire  insurance  same  as  upon  lake  shipments;  for  switch- 
ing cars  to  elevator  $2  per  car;  for  trimming  cars  $1  per  car;  for  inspec- 
tion aboard  25c  per  car,  and  for  commissions.  On  all  grain  brought  "by 
sample"  "free  on  board"  there  are  ordinarily  no  charges  save  com- 
missions. 

Cost  of  buying  and  cariying  grain  in  store.  Charges  accruing  upon 
grain  in  store  are:  For  storage  ^  cent  per.  bushel  for  each  10  days  or  part 
thereof;  fire  insurance  at  an  average  for  the  different  elevators,  say  2£ 
to  3  per  cent,  per  annum,  interest  at  10  per  annum,  and  commissions- 
This  during  the  term  of  summer  storage,  say  from  the  15th  April  to  the 
I5th  November;  and  from  the  last  named  date,  storage  accumulates  as 
above  stated,  up  to  4c  per  bushel,  when  no  more  accrues  until  the  15th 
of  April,  when  summer  storage  again  obtains.  Other  charges  for  carry- 
ing are  the  same  at  all  times  during  the  year. 


U.  S.  DISTRICT  COURT,  W.  D.  WISCONSIN. 

CHARLES   EDWARD  CLARK  Assignee  of  C.  B.  STEVENS  et  al.  v.  SYLVESTER  D. 

Foss  et  al. 

BOARD   or   TRADE   CONTRACTS — CONTRACT  TO   DELIVER   AT  A  FUTURE 
DAY — OPTION  CONTRACTS. 

BUNN,  J. — This  is  a  suit  in  equity  begun  by  the  assignee  of  C.  B. 
Stevens  &  Sons,  bankrupts,  to  set  aside  and  cancel  six  certain  promissory 
notes  for  the  sum  of  $1,231. 10  each,  aggregating $7,386. 60, and  a  mortgage 
upon  real  estate  at  De  Soto,  in  Vernon  county,  Wis.,  to  secure  the  same, 
executed  by  C.  B.  Stevens  &  Sons,  to  the  defendants,  Dec.  1,  1874,  on  the 
ground  that  the  same  are  void  as  being  given  to  secure  a  consideration 
arising  out  of  certain  option  contracts  for  the  sale  and  delivery  of  grain, 
which  it  is  claimed  were  wagering  contracts, under  the  laws  of  Illinois  in 
force  at  that  time. 

The  bankrupts  were,  and  for  many  years  prior  to  the  fall  of  1874, 
when  these  transactions  occurred,  had  been  merchants  and  dealers  in 
grain  and  produce  upon  the  Mississippi  river  at  DeSoto,  Wis.,  and  as  such 


42  LAWS  OF  TRADE. 

had  for  several  years  purchased  and  shipped  wheat  and  other  grain  to  the 
defendants,  who  were  commission  merchants  at  Chicago,  and  members  of 
the  Board  of  Trade,  for  twenty  years  or  more,  doing  business  under  the 
firm  name  of  S.  D.  Foss  &  Co.,  and  had,  also,  from  time  to  time,  specu- 
,  lated  in  grain  in  the  Milwaukee  market,  and  also  in  the  Chicago  market, 
through  the  defendants,  acting  as  their  factors  and  commission  merchants 
at  that  place.  They  were  then  in  good  financial  circumstances,  though  with 
small  capital;  had  a  running  account,  and  were  in  good  credit  and  stand- 
ing with  S.  D.  Foss  &  Co.  In  October,  1874,  the  bankrupts  ordered  de- 
fendants at  different  times,  by  telegraph,  to  make  sales  of  grain  for  them 
upon  the  Chicago  market  for  November  delivery,  amounting  in  the  ag- 
gregate to  70,000  bushels  of  corn,  and  5,000  or  10,000  bushels  of  wheat. 
The  defendants,  upon  receiving  these  orders,  went  upon  the  market  in 
Chicago  and  executed  them  by  making,  as  was  the  custom,  contracts  gen- 
erally in  writing,  and  in  their  own  name,  with  different  parties  for  the 
sale  of  the  grain  for  November  delivery,  in  lots  of  0,000,  or  multiples  of 
5,000  bushels;  and  immediately  and  fronl  time  to  time  notified  bankrupts 
by  telegram  and  by  letter  of  what  they  had  done,  and  their  acts  were 
fully  ratified  and  approved  by  the  bankrupts.  No  ;t  margins1'  were  re- 
quired to  be  put  up  by  C.  B.  Stevens  &  Co.,  as  they  had  an  account  with 
defendants,  and  were  accounted  by  them  responsible. 

At  about  the  time  or  a  little  before  these  contracts  matured,  as  they 
did  on  the  last  day  of  November,  the  defendants  performed  a  part  of  them 
on  the  behalf  of  C.  B.  Stevens  &  Sons,  by  a  purchase  arid  actual  de- 
livery of  the  grain  to  the  parties  to  whom  the  sales  were  made.  The 
evidence  shows  that  as  to  20,000  bushels  of  ccrn  theie  was  an  actual  de- 
livery of  the  grain,  and  as  to  10,000  more  a  delivery  of  warehouse  re- 
ceipts for  that  amount.  As  to  the  balance  of  the  grain  contracted  to  be 
sold,  the  defendants  went  upon  the  market  and  purchased  it  of  different 
parties  and  had  it  ready  for  delivery;  and  then  finding  other  parties  who 
had  similar  deals  for  November  purchases  and  sales,  formed  rings  or  tern- 
porary  clearing  houses  through  which  by  means  of  a  system  of  mutual  offsets 
and  cancellations  that  had  grown  upon  the  board,  the  contracts  were  settled 
by  an  adjustment  of  differences,  saving  an  actual  delivery  and  change  of 
possession.  It  so  happened  that  there  was  a  considerable  rise  in  the 
market  price  of  corn  during  the  month  of  November;  and  it  was  found 
that  after  these  transactions  were  closed  out  there  had  been  a  loss  to  C.  B. 
Stevens  &  Sons,  of  something  over  $  10,000,  and  which  the  defendants 
having  paid  in  cash  for  them  on  the  purchase  of  the  grain  debited  to 


BOARD  OF  TRADE.  43 

their  account  according  to  the  previous  course  of  dealing  between  the 
parties. 

The  notes  and  mortgage  in  suit  were  soon  afterward  given  by  the 
bankrupts  to  secure  a  portion  of  these  sums  so  advanced  by  the  defend- 
ants for  them,  including  also  about  $375  charged  by  S.  D.  Foss  &  Co.  as 
their  commissions.  Unsecured  notes  were  also  given  for  $3,000  balance 
of  the  $10,386.60  indebtedness,  which  were  afterwards  paid  by  C.  B. 
Stevens  &  Sons. 

Two  years  afterwards,  on  Nov.  19,  1876,  C.  B.  Stevens  &  Sons,  filed 
their  petition  in  bankruptcy  in  this  court,  and  were  on  the  same  day  ad- 
judged bankrupts.  The  assignee  in  bankruptcy  brings  this  suit  to  set 
aside  the  notes  and  mortgage,  and  in  substance  claims  that  C.  B.  Stevens 
&  Sons  at  the  time  the  orders  for  the  sale  of  grain  were  made  and  execu- 
ted in  October,  1874,  had  no  corn  to  sell  and  no  expectation  of  having 
any  with  which  to  fill  these  contracts.  That  these  facts  were  known  to 
both  parties  that  is,  to  the  bankrupts,  and  to  the  defendants  S.  D.  Foss 
&  Co.,  and  that  it  was  understood  by  and  between  them  at  the  time  that 
no  grain  was  in  fact  to  be  delivered  by  C.  B.  Stevens  &  Sons,  but  that  the 
contracts  were  to  be  settled  by  the  payment  or  receipts  of  differences, 
according  as  the  market  should  rise  or  fall  in  the  month  of  November,  and 
that  they  were  thus  mere  wagers  upon  the  November  market,  and  as 
such,  contrary  to  law  and  void,  and  that  the  notes  and  mortgage  con- 
fessedly given  to  secure  cash  advances  made  by  defendants  as  the  factors 
of  the  bankrupts,  and  with  their  approval,  to  pay  the  losses  sustained 
upon  these  sales  should  be  canceled  and  delivered  up. 

The  question  is  whether  this  should  be  done. 

This  question  is,  of  course,  a  mixed  question  of  fact  and  law.  But 
I  regard  it  as  more  a  question  of  fact  than  of  law;  and  I  cannot  help 
thinking,  in  looking  through  the  cases  on  the  subject  that  more  confusion 
and  discrepancy  have  crept  into  them  from  a  failure  to  determine  pre- 
cisely the  facts  than  frcm  any  essential  difference  of  opinion  upon  the 
abstract  propositions  of  law,  applicable  to  them.  This  seems  to  me  no- 
tably, the  case  in  Rumsey  vs.  Berry,  65  Maine,  570,  where  in  the  trial 
court,  instead  of  submitting  the  question  of  fact  as  to  what  the  contract 
really  was,  it  not  being  in  writing,  to  the  jury,  instructions  were  asked 
that  as  a  matter  of  law  the  contract  was  a  wagering  contract.  This  in- 
struction was  properly  refused,  but  there  was  a  total  failure  to  fairly  sub- 
mit the  question  of  fact  to  the  jury.  It  is  not  to  be  wondered  at  that  on 
an  appeal  to  the  Supreme  Court,  the  facts  not  being  fairly  determined,  the 


44  LAWS  OF  TRADE. 

opinion  sustaining  the  transactions  as  legal,  should  have  been  given  by 
a  divided  court,  four  judges  concurring  in  the  decision  of  the  court,  one 
judge  delivering  a  dissenting  opinion,  one  judge  concurring  in  a  dissent- 
senting  opinion,  and  still  another  judge  '•'•inclined  to  concur"  in  it.  If 
there  had  been  an  eighth  judge  it  might  not  be  improbable  that  he  would 
have  been  "inclined  to  concur"  in  both  opinions.  And  all  this  simply 
because  the  facts  themselves  not  having  been  determined,  there  was  no 
tangible,  well  denned  question  of  law  before  the  court. 

The  testimony  in  the  case  at  bar  is  quite  exhaustive  and  voluminous. 
It  is  confined,  however,  to  a  few  points,  and  though  somewhat  conflicting, 
I  have  had  no  great  difficulty  in  determining  the  facts  to  my  satisfaction. 
It  is  proven  that  at  the  time  these  contracts  were  made,  C.  B.  Stevens  & 
Sons  had  not  the  grain  on  hand  at  DeSoto  where  they  purchased  grain,  or 
elsewhere,  nor  any  expectation  of  having  it,  with  which  to  fill  the  con- 
tracts. 

Chas.  B.  Stevens,  the  active  member  of  the  bankrupt  firm,  testifies 
that  at  the  time  he  telegraphed  to  defendants  to  purchase  the  corn,  they 
had  not  a  bushel  on  hand,  and  did  not  expect  to  have  any  to  deliver  on 
the  orders;  that  they  were  not  dealing  in  corn  at  DeSoto  or  anywhere 
else,  and  never  did,  except  "  scalping"  in  it  at  Chicago;  that  they  had  no 
agreement  with  defendants  to  ship  corn  to  fill  the  orders,  and  that  the 
understanding  was  that  they  were  merely  "  scalping"  or  option  deals,  and 
were  to  be  settled  by  paying  or  receiving  the  difference  at  the  maturity 
of  the  contract  or  before;  that  they  never  did  deliver  any  corn  on  these 
sales;  that  defendants  claimed  that  they  bought  in  the  options  at  differ- 
ent times  and  charged  the  difference  to  C.  B.  Stevens  &  Sons. 

He  says  also,  that  he  had  no  conversation  with  defendants  until  after 
the  transactions  were  closed  up;  that  he  then  had  a  talk  with  both  of  them 
in  relation  to  these  deals;  that  it  was  on  the  Board  of  Trade  at  Chicago 
that  he  asked  M.  H.  Foss  how  they  settled  these  options  or  "  scalps,"  and 
if  there  was  any  wheat  or  corn  delivered,  and  he  said  no;  that  it  was 
done  generally  by  forming  rings  among  members  of  the  Board  by  clerks 
that  they  employed;  that  these  clerks  settled  the  deals  between  parties 
in  the  ring  whom  they  may  have  sold  to  or  bought  of,  and  by  paying  or 
receiving  differences  as  the  case  might  be;  that  he  thinks  he  asked  him 
about  the  delivery  of  grain,  and  he  said  no  grain  ever  passed.  Witness 
says  this  was  the  kind  of  transaction  he  was  operating  in,  as  he  under-, 
stood  it,  and  that  no  grain  was  to  be  delivered  or  received  on  these  con- 
tracts, and  that  he  understood  them  to  be  mere  wagers  on  the  future 


BOARD  OF  TRADE.  45 

price  of  grain,  and  that  defendants  regarded  them  in  the  same  light. 
That  they  continued  this  kind  of  deal  with  defendants  until  the  fall  of 
1876. 

On  cross  examination  he  says  he  commenced  sending  orders  to  de- 
fendants before  he  had  any  conversation  with  them;  that  it  was  a  month 
after  these  transactions  that  he  had  the  talk  with  them  in  Chicago;  that 
defendants  were  their  agents  and  commission  merchants  in  Chicago;  that  he 
understood  that  Foss  &  Co.  were  liable  for  the  damages  for  the  non-ful- 
fillment of  the  contracts  they  made  for  C.  B.  Stevens  &  Sons,  and  that 
they  expected  to  make  good  to  them  the  losses  which  they  might  incur  in 
their  behalf;  and  that  if  defendants  failed  to  comply  with  the  contracts 
they  made  for  the  bankrupts  they  would  be  deprived  of  their  privileges 
on  the  Board  of  Trade;  that  Foss  and  he  never  talked  about  their  agree- 
ment with  one  another  in  respect  to  these  transactions,  and  that  this  con- 
versation only  related  to  the  general  course  of  business  on  the  Board  of 
Trade;  that  he  (witness)  understands  that  all  contracts,  where  wheat  is 
sold  and  not  actually  delivered,  are  wagering  or  betting  contracts;  and 
that  all  option  contracts  are  betting  contracts.  The  other  Stevenses 
testify  substantially  in  the  same  way  as  to  their  understanding  of  the 
transaction,  but  not  as  to  the  conversation  with  defendants  in  Chicago. 
And  this  is  the  substance  of  the  testimony  for  the  complainant.  The  de- 
fendants positively  deny  the  conversation  testified  to  by  C.  B.  Stevens. 
They  swear,  in  substance,  that  they  had  no  understanding  about  these 
contracts  different  from  what  might  be  inferred  from  what  appears  on  the 
face  of  the  transaction  itself;  that  they  were  executed  in  their  usual 
course  of  business  in  the  same  manner  that  all  the  business  on  the  Board 
of  Trade  relating  to  option  contracts  for  future  delivery  of  grain  is  tran- 
sacted; that  instead  of  understanding  that  no  wheat  or  corn  was  to  be  de- 
livered, their  understanding  was  just  the  contrary;  that  the  grain  must  be 
delivered  according  to  the  terms  of  the  contract  in  all  cases;  that  there 
was  no  option  in  the  matter  except  as  to  the  day  in  November  on  which 
the  delivery  was  to  be  made;  that  if  not  delivered  before,  it  must  at  all 
events  be  delivered  on  the  last  day  of  the  month;  they  did  not  know 
whether  Stevens  &  Sons  had  the  grain  to  ship  from  DeSoto,  and  did  not 
stop  to  inquire,  but  supposed  they  might  have  it  ;  that  if  they  did  not 
ship  it,  they  (Fosss  &  Co.)  were  bound  to  deliver  the  grain  for  them;  that 
the  contracts,  according  to  universal  custom  on  the  Board  of  Trade,  were 
made  in  the  name  of  S.  D.  Foss  &  Co.;  the  name  of  their  customer  not 
being  disclosed  to  the  other  party  or  ever  inquired  after.  They  testify 


46  LAWS  OF  TRADE. 

that  they  have  never  dealt  in  what  are  called  "  puts"  and  "  calls,"  such 
as  are  described  in  re  Chandler,  9  N.  B.  R.,  514,  and  that  such  contracts, 
which  give  the  opinion  to  deliver  or  receive;  Oi  not,  are  prohibited  by 
the  rules  of  the  Board  of  Trade  as  well  as  by  the  laws  of  Illinois;  that 
they  made  these  contracts  with  various  members  of  the  Board  of  Trade, 
for  and  on  behalf  of  the  bankrupts  at  their  request,  and  on  their  behalf, 
and  for  their  benefit,  in  entire  good  faith,  without  any  understanding 
that  they  were  not  to  be  performed,  and  that  Stevens  &  Sons  not  ship- 
ping the  grain  they  performed  their  contracts  by  going  upon  the  market 
and  purchasing  the  wheat  and  corn  ;  that  as  to  30,000  bushels  of  corn 
they  made  a  delivery,  and  as  to  the  balance  they  closed  out  the  deal  in 
the  manner  before  indicated  by  mutual  offset  and  adjustment 
of  differences;  that  this  adjustment  of  differences  is  a  mere 
matter  of  convenience  to  the  members  of  the  Board,  and  to  their 
customers;  that  no  person  is  under  the  least  obligation  to  settle 
in  that  way,  and  that  dealers  may  and  often  do  insist  upon  an  actual  de- 
livery of  the  grain,  and  that  settlement  frequently  saves  to  their  custo- 
mers the  cost  of  insurance  and  storage.  That  the  object  of  forming  these 
rings  or  clearing  houses  is  to  close  out  the  transactions  and  get  them  off 
their  books;  and  this  is  what  they  call  "ringing  it  out."  But  that  it  fre- 
quently cannot  be  done  in  that  way;  as  if,  for  any  reason,  one  whose  as- 
sistance is  essential  to  complete  the  circle  prefers  an  actual  delivery  in 
which  case  the  ring  is  "  burst;"  and  then  each  must  perform  his  contract 
by  actual  delivery  of  the  grain.  Their  testimony  is  full  and  fair  and  in- 
telligent, upon  the  questions  at  issue,  and  they  are  corroborated  by  sev- 
eral other  witnesses,  ex-presidents,  ex-directors,  ex-commissioners  of  ap- 
peals, and  present  members  of  the  Board  of  Trade  and  some  of  the  per- 
sons with  whom  these  contracts  were  made.  The  testimony  is  conclusive 
that  this  business  was  done  much  in  the  same  manner  that  all  the  other 
business  on  the  Board  of  Trade  is  done  respecting  contracts  for  the  fu- 
ture delivery  of  grain.  They  all  agree  that  there  is  no  option  except  the 
option  to  deliver  on  any  day  of  the  month;  and  that  the  seller  is  bound, 
not  only  by  the  contract  but  by  the  rules  of  the  board,  to  which  it  is  made 
subject,  to  perform  his  contract  by  an  actual  delivery,  unless  excused  from 
the  performance  by  the  act  of  the  other  party;  and  for  a  violation  of  this 
rule  he  is  subject  to  the  discipline  of  the  board,  and  to  be  dismissed 
therefrom  if  he  insists  upon  the  violation  of  his  contract. 

Now,  which  party  is  best  corroborated  in  their  misunderstanding  of 
the  contract  by  the  admitted  facts  of  the  case? 


BOARD  OF  TRADE.  47 

It  is  clear  to  me  by  all  odds  that  the  defendants  are  best  corrobo- 
rated. 

It  is  very  easy  for  either  party  to  swear  to  what  his  own  understand- 
ing of  the  contract  was,  but  that  standing  alone  is  manifestly  immaterial. 
The  secret  intentions  of  one  party  contrary  to  what  appears  on  the  face 
of  the  contract,  and  not  communicated  to  the  other  party,  cannot  prevail 
to  make  a  contract  illegal  which  is  otherwise  valid.  The  real  question  is, 
what  was  the  contract?  and  that  implies  an  inquiry  as  to  the  mutual  under- 
standing and  meeting  of  the  minds  of  the  parties.  What  was  that?  It 
is  easy  for  a  party  to  swear  what  his  own  understanding  and  intentions 
were,  but  when  he  comes  to  swear  to  the  intentions  and  understanding  of 
the  other  party,  the  consideration  due  to  his  testimony  stands  on  an  en- 
tirely different  footing.  He  may  be  presumed  to  know  his  own  inten- 
tions, but  the  evidence  of  the  intentions  of  the  other  party  should  not 
be  of  a  merely  subjective  character,  but  should  consist  of  tangible  facts 
and  circumstances  outside  of  his  own  consciousness,  and  a  knowledge  of 
which  would  be  capable  of  satisfying  other  minds. 

The  conversation  with  the  defendants  testified  to  by  Stevens,  besides 
being  denied  by  them,  if  proven,  is  not  very  strong  evidence,  for  Stevens 
admits  that  this  was  a  month  after  these  transactions  occurred,  and  was  a 
general  conversation  relating  to  the  general  manner  of  doing  business 
upon  the  board,  and  not  to  the  transactions  in  question.  But  aside  from 
the  testimony  as  to  this  conversation  what  is  there  in  the  case  to  show 
that  S.  D.  Foss  &  Co.  had  any  intention  in  regard  to  these  contracts  dif- 
ferent from  what  is  fairly  evidenced  by  the  contracts  and  transactions 
themselves  as  they  appear  upon  their  face?  The  telegrams  were  orders 
in  writing,  and  gave  positive  directions  to  sell  grain;  not  to  sell  a  priv- 
ilege to  deliver  or  not.  The  evidence  shows  at  the  time  they  were  made 
there  had  been  no  previous  communications  or  understandings  in  regard 
to  these  purchases.  When  received  Foss  &  Co.  went  upon  the  market 
and  executed  the  orders  by  making  written  contracts  of  which  the  follow- 
ing is  a  blank  copy,  or  verbal  contracts  to  the  same  effect: 

"  GRAIX  CONTRACT.  CHICAGO,  — ,  1874. 

i 

u  We  have  this  day  sold  A.  B.  &  Co.  ten  thousand  bushels  of  No.  2 
corn,  in  store  at cents  per  bushel,  to  be  delivered  at  sellers'  op- 
tion, during  the  month  of  November,  1874, in  lots  of  5,000 


48  LAWS  OF  TRADE. 

bushels  each.     This  contract  is  subject  in  all  respects  to  the  rules  and 
regulations  of  the  Board  of  Trade  of  the  city  of  Chicago. 
"  M  —  at  —  cts. 

"  S.  D.  Foss  &  Co. 
"Per- 

When  these  contracts  matured  the  defendants  performed  them  by  a 
delivery  of  the  grain,  except  when  by  the  mutual  arrangement  of  the 
parties  concerned  the  contracts  were  taken  up  and  canceled,  and  then 
they  invariably  paid  in  cash  the  damages  which  the  law  would  have 
obliged  them  to  pay  upon  a  failure  to  perform  their  agreement;  that  is  to 
say,  the  difference  between  the  contract  price  and  the  market  price  on 
the  day  when  delivery  should  have  been  made. 

Now,  in  the  absence  of  more  convincing  testimony,  what  the  parties 
actually  did  is  pretty  good  evidence  of  what  they  intended  to  do;  and  1 
must  conclude  that  upon  the  face  of  the  transaction  as  shown  by  the  acts 
and  conduct  of  the  parties,  the  evidence  is  very  strong  that  these  sales 
were  bonajide  sales,  and  not  made  with  any  intent,  mutual  between  the 
parties,  to  violate  the  law. 

The  notes  and  mortgage  sought  to  be  set  aside  (as  well  as  the 
original  contracts  for  the  sale  of  the  grain,  both  as  between  the  bankrupts 
and  S.  D.  FOSS&  Co.,  and  between  S.  D.  Foss  &  Co.  and  the  parties  with 
whom  they  contracted),  being  in  writing  and  perfectly  fair  on  their  face, 
and  given  for  a  full  money  consideration  without  any  preiense  of  fraud  or 
unfair  dealing,  the  burden  of  making  a  clear  case  for  setting  them  aside 
for  illegality  lies  with  the  complainant.  There  should  be  in  his  favor  a 
clear  preponderance  in  the  weight  of  the  evidence:  Pixley  vs.  Boynton, 
79  111.,  351.  Contracts  made  and  so  deliberately  entered  into  upon  ade- 
quate consideration,  without  fraud,  should  not  be  set  aside  for  light  or 
transient  reasons,  or  mere  suspicion  of  being  contrary  to  law.  But  in- 
stead of  there  being  a  preponderance  of  proofs  in  favor  of  the  com- 
plainant, I  am  obliged  to  believe  that  the  weight  of  evidence  is  the  other 
way,  and  I  must  find  as  facts: 

J.  That  C.  B.  Stevens  &  Sons,  when  they  gave  the  orders  for  the 
sale  of  the  grain,  had  no  grain  to  deliver,  no  contracts  made  by  which 
they  expected  to  obtain  it,  and  no  expectation  of  ever  having  it  delivered 
by  shipping  to  the  defendants. 

They  did  expect  and  intend,  however,  that  S.  D.  Foss  &  Co. 
would  make  these  contracts  much  as  they  did,  in  fact,  make  them,  and 
that  they  would,  at  their  maturity,  take  care  of  them  for  C.  B.  Stevens 


BOARD  OF  TRADE.  49 

&  Sons  in  about  the  same  manner  they  did  take  care  of  them,  by  a  de- 
livery of  the  grain  or  by  a  settlement  and  adjustment  of  the  differences 
according  to  circumstances;  and  that  whatever  the  profits  were,  they 
were  to  be  credited  with  them,  and  if  there  were  losses,  such  losses  were 
to  be  borne  by  them. 

2.  That  the  defendants  did  not  know  that  C.  B.  Stevens  &  Sons  had 
not  the  grain,  but  had  no  reason  to  expect  that  they  had  or  would  obtain 
it  to  ship  to  Chicago  in  sufficient  amounts  to  fill  the  orders,  but  intended 
that  if  C.  B.    S.  &  Sons  did  not  ship  the  grain,  they  (defendants)  would 
perform  their  contracts  with  the  parties  with  whom  they  were  severally 
made  in  C.  B.  Stevens  &  Sons  behalf,  in  good  faith,  by  a  delivery  of  the 
grain,  unless  delivery  was  dispensed  with  by  the  parties  who  had  a  right 
to  insist  upon  a  fulfillment  of  the  contract,  and  that  there  was  no  mutual 
understanding  that  the  contracts  were  mere  wagers  on  the  price  of  grain 
for  the  November  market,  or  that  there  was  to  be,  in  fact,  no  delivery, 
but  only  an  adjustment  of  differences. 

3.  The   understanding  of  the   other   parties  to  these    contracts,  to 
whom  sales  were  made,  as  to  their  being  performed,  was  the  same  as  that 
of  the  defendants. 

Having  determined  the  facts,  the  law  applicable  to  the  case  is  not 
difficult. 

1.  The  contracts  sought  to  be  set  aside  are  written  contracts,  and  the 
mortgage  is  under  seal.     Nevertheless,  the  weight  of  authority,  and  I 
think  that  of  doctrine,  is,  that  you  shall  go  behind  the  writing  and  show 
what  the  real   intent  and  meaning  of  the  parties  were;  and  if  it  appears 
that  the    writing  does  not  express   the  real  intent  of  the  parties,  but  is 
merely  colorable,  and  used  as  a  cloak  to  cover  a  gambling  transaction, 
the  court  will  not  lend  its  aid  to  enforce  the  contract,  however  fair  on  its 
face;  or  if  securities  are  given,  as  in  this  case,  will  interfere  on  grounds 
of  public  policy  and  for  the   public   good  rather  than  for  the  purpose  of 
relieving  a  party  who  is  himself  particeps  criminis  in  an  inhibited  trans- 
action, to  set  aside  such  securities   In  re  John  Green,  65  U.  B.  R.,  198, 
and  the  cases  there  cited. 

2.  A  contract  for  the  future  delivery  of  personal  property,  which  the 
seller  has  not  got  when  the   contract  is  made,  nor  amr  means  of  getting 
it,  is  not  void  for  illegality. 

That  was  held  in  Porter  vs.  Viets,  1  Bissell,  177,  and  is  the  settled 
law.  See  Logan  us.  Musick  and  Brown,  81  111.,  415;  Hibblewhite  vs. 
McMorine,  5  Meeson  and  Welsby,  462. 


50  LAWS  OF  TRADE. 

The  seller  is  bound  by  the  contract  to  deliver  the  goods,  and  if  he 
fails  must  pay  damages. 

Such  contracts,  though  entered  into  for  pure  purposes  of  speculation, 
however  censurable  when  made  by  those  engaged  in  ordinary  mercantile 
pursuits,  and  who  have  creditors  dependent  for  the  pay  of  their  just 
claims  upon  their  prudent  management  in  business,  are  nevertheless  not 
prohibited  by  law. 

As  said  in  Porter  vs.  Viets,  supra,  "  People  might  differ  about  the 
propriety  of  making  such  a  contract  by  one"  who  did  not  know  certainly 
where  he  was  to  acquire  the  property,  but  having  made  it,  the  courts  will 
compel  him  to  abide  by  it."  That  case  was  on  demurrer,  and  was  in 
many  essential  respects  similar  to  the  one  at' bar. 

The  substance  of  the  contract  itself  is  what  must  control.  The 
secret  intention  of  one  of  the  parties  uncommunicated  to  the  other  party, 
not  to  fulfill  his  contract,  is  not  enough  to  make  the  transaction  illegal. 
The  intent  that  it  should  be  a  mere  betting  upon  the  market,  without  any 
expectation  of  actual  performance,  must  be  mutual  and  constitute  an  in- 
tegral part  of  the  real  contract,  in  order  to  vitiate  it. 

Furthermore,  supposing  it  had  been  the  mutual  intention  of  S.  D. 
Foss  &  Co.  and  the  bankrupts  that  these  contracts  were  not  to  be  per- 
formed, I  do  not  see  that  that  would  make  them  illegal,  so  long  as  the 
other  parties  to  the  contract  did  not  participate  in  that  illegal  intention. 
S.  D.  Foss  &  Co.  and  C.  B.  Stevens  &  Sons  did  not  constitute  the  parties 
to  the  contract.  There  was  no  contract  for  the  sale  and  delivery  of  grain 
made  between  them.  As  between  them  the  relation  existed  of  principal 
and  agent.  S.  D.  Foss  &  Co.  made  the  contract  in  their  own  name,  but 
for  and  in  behalf  of  C.  B.  Stevens  &  Sons,  and  S.  D.  Foss  &  Co.  and 
and  C.  B.  Stevens  &  Sons  constitute  but  one  party  to  the  contract, 
whether  it  be  considered  as  a  contract  between  S.  D.  Foss  &  Co.  and  the 
parties  in  Chicago  with  whom  they  dealt,  or  as  a  contract  between  C.  B. 
Stevens  &  Sons  and  those  same  parties;  and  there  is  no  evidence  what- 
ever to  show  that  those  other  parties  iiad  any  notice  or  knowledge  of  this 
gambling  intent.  On  the  contrary,  they  knew  that  Foss  &  Co.,  as  the 
evidence  shows,  and  some  of  these  same  parties  testify,  were  men  cf  high 
standing  and  responsibility  on  the  Board  of  Trade,  and  would  perform 
their  agreements;  Leehman  Bros.  vs.  Strassberger,  2  Woods  C.  C.  R.,  5e54, 
and  Wolcott  vs.  Heath,  78  111.,  433,  are  directly  in  point. 

4.  If  the  original  contracts  for  the  sale  of  grain  were  liable  to  the 
taint  of  illegality,  as  charged,  it  does  not  necessarily  follow  that  the  notes 


BOARD  OF  TRADE.  51 

and  mortgage  executed  by  one  of  the  principals  in  the  transaction  to  se- 
cure the  payment  of  moneys  previously  advanced  by  their  agent  to  pay 
losses  springing  out  of,  and  resulting  from,  those  original  transactions, 
are  contaminated  with  the  same  vice. 

This  question  is  fairly  presented  by  this  record,  though  the  decision 
of  the  point  is  not  necessary  to  the  case,  and  I  do  not  care  to  decide  it. 
I  shall,  therefore,  content  myself  with  referring  to  some  few  high  author- 
ties,  which  hold  such  a  contract  valid.  The  leading  English  case,  de- 
cided by  Lord  Mansfield,  is  Falkney  vs.  Renous,  4  Burr,  2,069.  Follow- 
ing this  are  Petrie  vs.  Han  way,  3  Term.  Rap,,  418;  Farmer  vs.  Russell,  1 
Bos.  &  Pull.,  296. 

The  first  case  cited  is  a  strong  case,  and  though  seemingly  question- 
ed by  Lord  Kenyon  in  Petrie  vs.  Hanway,  supra,  has  never  been  over- 
ruled, I  believe,  in  England.  Marshall,  C.  J.,  cites  it  approvingly  in 
Armstrong  vs.  Toler,  11  Wheat,  258.  See,  also,  Owen  vs.  Davis,  1  Baily, 
s.  c.,  315,  and  the  recent  case  before  cited  of  Lehman  vs.  Strassberger,  2 
Woods,  C.  C.  R.,  554,  which  is  very  much  in  point,  I  think.  This,  I  be- 
lieve, is  undoubtedly  the  result  of  the  English  cases.  How  far  the  rule 
has  been  changed  by  statute,  or  by  decisions  in  the  several  states,  I  do 
not  care  to  inquire. 

5.  Whatever  might  be  the  judgment  of  discreet  men  as  to  the  pro- 
priety of  such  purely  speculative  transactions  as  are  disclosed  by  this  re- 
cord, undertaken  by  men  in  mercantile  pursuits,  I  am  unable  to  see,  on 
general  principles,  any  objection  to  them  in  point  of  law.  The  law  does 
not  undertake  to  prevent  speculation.  It  does  not  undertake  the  Quix- 
otic task  of  nicely  governing  men  in  all  the  relations  of  life,  and  compell- 
ing them  to  do,  under  all  circumstances,  what  is  prudent  and  reasonable. 
The  truth  is,  men  are  speculating  creatures  as  certainly  as  they  are  eat- 
ing and  sleeping  ones.  And,  although  it  is  undoubtedly  true  that  much 
harm  comes  to  the  community  from  over  speculation,  it  is  more  than 
doubtful  if  the  world  would  be  better  off  without  speculators;  or,  if  it 
would  be,  that  the  law  can  do  much  in  the  way  of  abolishing  them. 

As  a  common  thing,  business  men  are  prone  to  regard  their  own 
judgment  of  the  market  as  a  part  of  their  capital,  and  to  a  certain  extent 
they  have  a  right  so  to  do. 

It  is  only  with  the  more  manifest  abuses  of  the  privileges  of  citizens 
in  their  dealings  with  one  another,  and  when  the  evil  touches  and  infects 
the  public  welfare,  that  the  law  assumes  to  interfere.  In  the  main,  com- 
mercial transactions  must  be  left  to  be  regulated  by  the  higher  and  more 


U.  OF  iU-    Lift 


52  LAWS  OF  TRADE. 

inexorable  laws  which  govern  the  trading  world.  ,  If  the  transactions  dis- 
closed by  this  case  are  illegal,  then  undoubtedly  a  great  part  of  the 
banking  and  clearing  house  transactions  in  our  great  commercial  centers 
-  are  illegal  also. 

I  am  persuaded  that  to  hold  them  so  would  be  trenching  too  severe- 
ly upon  the  business  of  the  commercial  world,  without  any  correspond- 
ing benefit  to  be  expected  from  it. 

It  might  be  a  difficult  task  to  lay  down  any  single  rule  or  draw  a 
straight  line  which  should  define  or  divide  all  merely  speculative  from 
all  pure  gambling  transactions,  for  it  must  be  admitted  that  the  same 
prime  element  of  risk  is  common  to  both.  But  it  has  seemed  to  me  that 
according  to  any  reasonable  rule  which  it  would  be  practicable  to  en- 
force, these  transactions  must  fall  in  the  side  of  legal  speculations.  They 
were  carried  on  in  good  faith,  and  in  the  usual  and  ordinary  course  of 
business  upon  the  Board  of  Trade,  which  it  seems  undertakes  to  exercise 
a  salutary  control  over  its  members,  it  appearing  in  evidence  that  if  any 
member  fails  or  refuses  to  perform  his  contract  by  delivery  or  receiving 
grain  which  he  has  agreed  to  deliver  or  receive,  he  is  subject  to  the  dis- 
cipline of  that  body;  and  if  the  offending  member  is  still  refractory  or 
contumacious,  he  is  suspended  or  finally  dismissed  from  the  Board,  thus 
adding  to  the  penalties  which  the  law  attaches  to  a  violation  of  contracts, 
the  sanction  of  a  wholesome  family  discipline.  The  witnesses  agree  that 
what  are  called  "puts"  and  "calls"  are  not  allowed  to  members  of  the 
Board,  and  that  "scalpers"  cannot  live  in  that  atmosphere,  they  bearing 
the  same  relation  to  that  fraternity  of  commercial  gentlemen  that  shys- 
ters do  to  full-bred  lawyers.  If  that  be  so,  certainly  they  are  far  enough 
Asunder. 

Then  again,  if  we  look  at  the  equities  of  this  case,  aside  from  the 
-special  head  of  equity,  under  which  the  court,  in  the  interest  of  the  pub- 
lic good,  will  interfere  to  set  aside  and  cancel  securities  given  upon  a 
gaming  consideration,  the  general  equities  and  intrinsic  justice  of  the 
case  are  largely  with  the  defendants.  The  whole  business  was  originat- 
ed and  carried  on  at  the  instance  and  tor  the  benefit  of  the  bankrupts. 
Whatever  of  legal  turptitude  attaches  to  these  transactions,  it  is  evident 
-that  C.  B.  Stevens  &  Sons  were  not  merely  particeps  criminis,  but  the 
•principal  offenders.  When  profits  ensued,  as  they  frequently  did,  they 
put  them  down  in  their  own  pockets.  On  one  occasion  it  is  in  evidence 
that  they  represented  to  defendants  that  they  had  made  quite  large 
-amounts,  something  like  $10,000  out  of  these  deals.  Why,  then,  if  it 


BOARD  OF  TRADE.  53- 

was  their  deal,  and  they  enjoyed  the  profits  when  there  were  profitsr 
should  they  not  bear  the  loses  when  the  market  turned  against  them,  and 
these  fell  to  their  lot,  and  not  shuffle  them  off  upon  their  agents  who,  it 
is  not  denied,  had  acted  fairly  and  honorably  with  them? 

Foss  &  Co.  had  no  interest  in  these  transactions,  except  their  com- 
missions, and  instead  of  leading  the  bankrupts  on  in  this  business,  the- 
evidence  of  the  bankrupts  is  that  they  discouraged  them  on  every  oc- 
casion, Their  letters,  introduced  in  evidence  by  the  complainant,  show 
that  S.  D.  Foss  &  Co.,  from  time  to  time,  dissuaded  the  bankrupts  from, 
these  speculating  deals — told  them  they  were  taking  too  much  risk,  both 
in  respect  to  wheat  and  corn ;  that  there  was  a  small  stock  of  old  corn  in 
the  market,  that  the  new  crop  had  not  yet  been  moved,  that  there  was- 
danger  of  a  "corner"  being  run,  and  sending  prices  up,  and  on  one  oc- 
casion protested  that  if  they  insisted  upon  taking  such  risks  they  must 
employ  other  commission  men.  These  letters  were  relied  upon  to  show 
that  these  defendants  understood  these  deals  to  be  gambling  transac- 
tions; but  to  my  mind  they  simply  show  a  proper  appreciation,  on  the 
part  of  the  defendants,  of  the  risks  which  men,  in  the  circumstances  and. 
business  of  the  bankrupts,  were  taking  on  themselves,  and  a  due  consid- 
eration for  the  interests  of  their  principals  in  that  behalf.  But  C.  B- 
Stevens  &  Sons,  relying  confidently  on  their  own  judgment  and  sources- 
of  knowledge,  as  men  are  inclined  to  do,  continued  the  business  until 
the  tide  turned  against  them.  Under  these  circumstances,  one  would 
say  that  the  commonest  kind  of  honesty  that  passes  current  among  men- 
should  require  C.  B.  Stevens  &  Sons  to  pay  these  losses,  and  not  shift 
them  off  upon  their  factors.  Of  course  the  assignee  stands,  as  far  aa 
legal  right  goes,  in  no  better  case  than  the  bankrupts;  and  it  is  due  to- 
the  bankrupts  to  say  that,  as  far  as  they  are  personally  concerned,  they 
have  never  objected  to  the  payment  of  these  claims,  though  they  are 
now  the  main  witnesses  for  the  claimant,  and  in  their  testimony  say  thejr 
want  him  to  succeed.  The  assignee,  of  course,  in  the  interest  of  the 
creditors,  has  only  done  his  duty  in  bringing  these  matters  before  the- 
court  for  adjudication. 

I  have  not  undertaken  to  review  the  decisions  upon  this  subject.  I 
have  not  thought  it  essential.  Those  of  the  highest  tribunal  in  Illinois,, 
though  not  perhaps  entirely  reconcilable,  I  think  are  so  in  the  main,  andi 
go  to  support  the  transaction  disclosed  by  the  case  at  bar.  Whatever 
the  discrepancy  there  is,  as  I  have  before  remarked,  arises  more  from  th<v 
facts  than  from  the  law.  The  most  that  can  be  said  is,  that  differi'nt 


54  LAWS  OF  TRADE. 

courts  have  come  to  different  conclusions  upon  different  state  of  facts. 
This  cannot  be  wondered  at,  and  is  unavoidable.  How  far  thd  judg- 
ment of  the  court,  in  a  given  case  upon  the  facts,  may  be  influenced  by 
its  opinion  of  the  law  and  the  essential  justice  of  the  case,  cannot  al- 
ways be  known.  I  confess  I  have  a  strong  predilection  in  favor  of  hold- 
ing men  of  full  age  and  right  mind  to  their  contracts  deliberately  enter- 
ed into  upon  full  and  adequate  money  considerations,  without  deceit  or 
imposition,  and  when  the  consequences  of  their  contracts,  however  ill- 
advised,  are  mainly  personal  to  themselves. 

I  think  the  case  cited  of  Wolcott  vs.  Heath,  78  111.,  433,  Pixley  vs. 
Boynton,  79  111.,  351,  and  Logan  vs.  Musick,  81  111.,  426,  express  the  law 
of  that  state  on  the  subject,  and  are  authorities  in  the  case  at  bar. 

The  case  of  Lyon  vs.  Culbertson,  reported  in  9  Chicago  Legal  News 
185,  Feb.  24,  1874,  and  Vol.  5,  No.  19,  p.  401  of  the  Central  Law  Jour- 
nal, in  which  Justice  Dickey  delivers  a  vigorous  dissenting  opinion,  I  am 
told,  was  decided  before  the  cases  in  the  79th  and  81st  111.  Reports. 
However  that  may  be,  and  whether  fhe  decision  be  good  law  or  not,  I  do 
not  see  that  it  is  necessarily  at  variance  with  the  other  cases,  nor  that  it 
attempts  to  overrule  or  qualify  them  in  the  least. 

That  seemed  to  turn  on  a  question  that  is  not  presented  in  this  case. 

There  is  no  failure  to  perform,  or  offer  to  perform,  on  the  part  of  S. 
I).  Foss  &  Co.  on  any  of  the  contracts  which  they  made;  nor  anything  in 
the  contracts  dispensing  with  an  offer  to  perform. 

Again,  it  must  be  incontestible,  that  if  the  contracts  were  valid  in 
their  inception,  and  not  tainted  with  any  gambling  intent  or  device,  a 
subsequent  mutual  settlement  by  the  parties,  which  took  the  place  of 
actual  performance,  cannot  have  the  retroactive  effect  of  making  them 
void  for  illegality.  If  the  contracts  were  void  at  all,  they  must  have 
been  void  when  made.  The  subsequent  conduct  of  the  part'es  may,  and 
should,  be  considered  as  evidence  tending  to  show  what  the  real  con- 
tracts were  when  entered  into;  but  if  they  were  originally  valid,  no  sub- 
sequent act  of  the  parties  can  have  the  effect  to  render  them  obnoxious 
to  the  taint  of  illegality  as  being  gambling  contracts. 

I  have  not  overlooked  the  case  of  In  re  Green,  supra,  decided  by 
my  learned  and  lamented  predecessor;  15  B.  R.,  198. 

I  have  not  had  occasion  to  review  the  evidence  from  which  the  con- 
clusions of  fact  in  that  case  were  drawn,  and  it  is  enough  to  say  that 
upon  the  findings  of  the  fact  made,  the  law  is  undoubtedly  correctly 
stated.  Bill  dismissed. 


BOARD  OF  TRADE.  55 


THE    "ANTI-CORNER    RULE." 

The  attempt  to  repeal  the  so-called  "Anti-Corner"  rule  of  the  Chica- 
go Board  of  Trade  has  elicited  diverse  opinions  from  interested  parties 
as  to  the  merits  or  demerits  of  said  rule,  demonstrating  the  truth  of  the 
aphorism,  "many  men  of  many  minds."  Still,  despite  conflicting  opin- 
ions and  arguments  upon  the  subject,  it  must  be  conceded  that  the 
weight  of  argument  is  most  decidedly  in  favor  of  some  rule  that  -will  ef- 
fectually prevent  corners  as  they  frequently  occurred  in  former  years, 
and  as  they  are  certain  to  occur  under  a  system  which  allows  the  pur- 
chaser of  property  to  fix  his  own  measure  of  damages  in  case  of  default. 

The  object  and  intent  of  the  rule  in  question  was  to  discountenance 
the  formation  of  "Corners"  on  unwarrantably  manipulated  and  fictitious 
markets,  by  protecting  as  far  as  might  be,  those  who  were  caught  short  or 
who  for  any  reason  were  unable  to  specifically  fulfill  their  contracts. 

This  rule  has  worked  satisfactorily  in  the  main  for  some  three  years; 
it  gives  every  operator  a  fair  show  in  the  field,  and  insures  to  all,  a  realiza- 
tion of  all  legitimate  profits  in  their  deals.  There  is  some  limit  to  exac- 
tions and  the  extortionate  crowd  are  kept  within  reasonable  bounds.  As 
a  matter  of  course,  it  is  impracticable  to  frame  rules  requiring  infinitely 
varied  application  which  will  not  occasionally  work  hardship;  but  it  is 
probable  if  the  rule  under  consideration  were  abolished,  there  would  be 
twenty  sufferers  where  there  is  now  one. 

The  principal  objection  to  the  rule  as  it  stands  is  not  in  any  hard- 
ship that  has  ever  occurred  by  its  application,  but  in  the  persistent  mis- 
interpretation of  its  provisions.  In  many  instances  outside  parties  have 
been  induced  to  sell  short,  on  the  assurance  from  their  commission  mer- 
chants that  under  this  rule  they  could  default  on  their  contracts  with  im- 
punity, and  that  the  measure  of  damages,  if  any,  would  be  determined 
on  the  basis  of  the  value  of  the  property  for  shipment  to  Eastern  mar- 
kets; whereas  the  rule  provides  that  as  only  one  of  the  elements  in  de- 
termining its  value,  and  no  such  simple  question  in  arithmetic  has  ever 
been  applied  as  a  finality  in  the  decision  of  any  case  under  the  rule. 
The  local  demand  occasioned  by  rules  made  in  excess  of  the  supply  at 
the  maturity  of  contracts  will  probably  be  always  more  or  less  considered 
in  determining  the  real  current  value  of  property.  Such  prices  may  be 
entirely  legitimate,  and  not  in  any  sense  the  result  of  combination  or 


56  LAWS  OF  TRADE. 

partaking  in  any  degree  of  extortion—they  are  not  fictitious  in  any 
sense  and  are  not  under  the  provisions  of  the  rule  to  be  disregarded. 
Purely  fictitious  prices  are  and  ought  to  be  repudiated,  and  such  un- 
doubtedly are  those  paid  for  or  bid  by  a  party  or  combination  merely  for 
the  purpose  of  establishing  values  on  a  basis  that  will  enable  them  to  ex- 
tort money  damages  from  those  unable  to  specifically  fulfill  their  en- 
gagements. 

That  a  great  majority  of  the  legitimate  receivers  and  dealers  are  op- 
posed to  a  return  to  the  former  rule  in  this  respect  is  unquestionable, 
and  actually  believe  it  would  encourage  dishonesty  and  give  rise  to  un- 
certainty; that  there  would  be  no  stability  in  prices,  and  all  concerned, 
whether  merchants,  producers  or  shippers,  would  be  at  the  mercy  of  un- 
principled and  irresponsible  sharpers,  who  would  bring  the  Board  of 
Trade  and  the  city  into  disrepute  and  disgrace.  Honor  would  be  at  a 
ruinous  discount,  and  integrity  would  be  as  a  foot-ball  kicked  hither  and 
yon  by  every  shyster. 

The  inevitable  effect  of  corners  is  demoralizing  to  individuals  and 
damaging  to  the  interests  of  legitimate  trade,  and  is  forbidden  by  the 
laws  of  England  so  far  back  that  the  memory  of  man  runneth  not  to  the 
contrary.  The  July  corner,  as  statistics  plainly  show,  caused  an  im- 
mense falling  off.  of  both  domestic  and  foreign  shipments  of  grain,  and 
the  practical  embargo  was  seriou&ly  felt  by  a  score  of  interests.  More- 
over, such  a  condition  of  things  has  a  decided  tendency  to  permanently 
injure  our  foreign  grain  trade  by  turning  orders  into  other  channels. 

Some  parties  argue  that  the  Anti-Corner  rule  serves  to  depress  the 
market  and  give  the  advantage  to  other  points,  but  this  will  always  work 
in  consonance  with  the  law  of  average,  and  what  is  apparently  lost  at 
one  time  will  be  gained  at  another.  It  is  still  further  contended  that  in 
selling  short  on  futures  the  "scalpers"  should  suffer.  So  they  surely  will 
in  the  long  run.  Did  not  the  shorts  get  squeezed  sufficiently  in  July  of 
the  present  year  in  Chicago?  We  should  say  that  ten  to  fifteen  cents 
per  bushel  premium  was  ample  penalty  for  the  "crime." 

Look  at  Milwaukee  without  a  corner  rule,  where  wheat  was  run  up,  say 
about  twenty-five  cents  above  value  for  Eastern  shipment  at  the  close  of 
the  month  in  question.  Such  would  have  been  impossible  had  a  similar 
rule  been  in  operation  at  that  point;  and  that  the  market  was  forced  up 
to  a  fictitious  figure  is  manifest  from  the  tremendous  tumble  that  ensued 
when  the  July  deal  had  closed.  And  was  Milwaukee  benefited  in  the 
least  by  the  disreputable  business?  It  must  have  been  superb  fun  for  the 


BOARD  OF  TRADE.  57 

mourners  to  see  one  lucky  fellow  take  the  whole  pot  and  then  hear  the 
shout  like  "a  rebel  brigade  or  a  million  Sioux,"  as  the  report  puts  it, 
"McGeogh  has  won!  McGeogh  has  won!"  "Hurrah  for  Mac!"  "Milwau- 
kee's credit  is  sustained!" 

Elegant  past-time,  this,  for  the  victims  of  the  Milwaukee  July  deal! 
The  hero  of  the  hour  had  "strictly  complied  with  the  rules  of  the  Cham- 
ber," and  the  shorts  must  toe  the  mark,  even  if  it  took  the  bread  from 
their  children's  mouths,  and  then  have  tha  glorious  satisfaction  and  con- 
eolation  of  knowing  that  "Milwaukee's  credit  is  sustained!" 

The  credit  of  Milwaukee,  forsoothi  Her  credit  and  that  of  the 
Chamber  of  Commerce  in  this  regard  is  the  credit  which  professional 
gamblers  may  justly  claim,  for  there  is  a  dubious  sort  of  "honor  among 
thieves." 

Their  appears  to  be  ecery  good  reason  why  the  Anti-Corner  rule 
should  be  sustained  and  abided  by.  The  interests  of  the  legitimate  trade 
and  fair  dealing  demand  it,  while,  on  the  contrary, '  as  experience  has 
conclusively  demonstrated,  all  corner  transactions  are  incalculably  detri- 
mental to  the  moral  and  commercial  welfare  of  the  community. 

In  substantiation  of  the  foregoing  arguments  against  corners  there 
is  voluminous  testimony.  A  few  significent  illustrations  may  be  aptly 
cited  herewith. 

There  was  the  memorable  corner  in  oats  of  June,  1872,  which  prov- 
ed most  disastrous  in  every  way,  to  every  public  interest.  For  some 
time  it  laid  an  embargo  upon  trade,  and  so  clogged  the  wheels  of  busi- 
ness and  choked  the  avenues  and  arteries  of  commerce,  that  the  move- 
ment of  all  kinds  of  produce,  of  property  transported  by  rail  or  water, 
was  checked  and  at  last,  for  a  time,  actually  stepped. 

On  this  point  there  is  overwhelming  proof,  and  we  make  a  few  brief 
extracts  from  the  depositions  of  members  of  the  Board  of  Trade,  in  the 
matter  of  Chandler,  Pomeroy  &  Co.,  bankrupts,  heard  before  Judge 
Blodgett  in  the  U.  S.  District  Court  for  the  Northern  District  of  Illinois, 
setting  forth  the  "ways  that  are  dark"  in  such  transactions. 

Charles  Randolph,  Secretary  of  the  Board  of  Trade,  testified  that 
"the  idea  of  a  corner  is  to  buy  more  property  and  contract  for  more  pro- 
perty than  there  is  available  for  delivery.  The  party  must  have  con- 
tracts for  more  than  there  is  here  or  can  be  here  during  the  life  of  the 
contract.  Corners  disorganize  trade,  and  are  very  apt  to  disorganize  the 
party  who  is  running  them." 

Quite  as  emphatic  is  the  testimony  of  Murraj  Nelson,  who  said:  "1 


58  LAWS  OF  TRADE. 

should  say  corners  were  injurious,  inasmuch  as  they  derange  trade  and 
commerce,  force  it  out  of  its  natural  course,  and  tend  to  create  a,  ficti- 
tious state  of  things.  An  undue  and  unusual  supply  is  forced  upon  the 
market  without  a  corresponding  demand  within  a  limited  space  of  time, 
which  clogs  and  interferes  with  trade  in  a  natural  way  for  a  considerable 
time  afterward.  Then  they  are  very  likely — almost  sure — to  result  in 
disaster,  to  one  side  inevitably,  and  very  likely  to  both,  as  it  is  decidedly 
and  entirely  a  gambling  operation." 

H.  C.  Ranney  testified:  "The  effect  of  a  corner  in  grain  is  disas- 
trous. It  unsettles  prices,  and  destroys  confidence  in  general  trading  in 
grain  in  Chicago.  The  effect  is  disastrous  on  general  legitimate  traders 
— always  is,  and  always  must  be.  The  corner  crippled  great  masses  oj 
our  commission  merchants  very  badly" 

The  late  Wtn.  F.  Coolbaugh  testified:  "My  observation  and  exper- 
ience of  the  effects  of  all  the  combinations  that  have  been  made  since  I 
have  been  in  business,  as  a  banker,  to  corner  any  description  of  grain, 
has  satisfied  me  that  they  are  very  injurious  to  trade,  and  in  all  respects 
demoralizing  to  the  commercial  public."  He  further  said:  "I  have  seen 
the  effect  of  such  operations  illustrated  by  a  decline  of  forty  cents  a 
bushel  in  wheat  in  twenty-four  hours;  ten  or  fifteen  on  oats.  That  illus- 
trates it  better  than  anything  else." 

Charles  E.  Culver,  then  President  of  the  Board,  testified:  "The  re- 
sult of  grain  corners  is  usually  disastrous  to  the  parties  interested — those 
directly  interested,  either  as  buyers  or  sellers." 

Robert  Harris,  Superintendent  of  the  C.  B.  &  Q.  R.  R.,  testified: 
"The  idea  in  a  corner  seems  to  be  that  there  is  no  exchange  of  commodi- 
ties; in  other  words,  it  is  a  modern  species  of  gambling.  The  great  ob- 
jection to  it  is  in  that  part  of  it  which  is  essentially  gambling,  by  which 
an  individual  gets  an  advantage  without  having  rendered  an  equivalent." 

Much  other  evidence  of  a  similar  tenor  was  submitted  in  connection 
with  that  "celebrated  case,"  but  enough  has  been  given  to  fully  corro- 
borate our  position. 

As  another  forcible  illustration  of  the  pernicious  effects  of  corners, 
our  attention  has  been  called  to  the  tact  that  in  the  spring  of  187G,  a  cor- 
ner (or  at  least  an  attempt  to  control  the  market)  was  run  in  No.  2  spring 
wheat  in  this  market.  The  parties  manipulating  the  market  were  said  to 
have  made  much  money,  notwithstanding  the  fact  that  upon  the  culmin- 
ation of  the  corner,  they  had  on  hand  a  large  quantity  of  wheat.  Rather 
than  ship  this  wheat,  say  300,000  bushels,  or  sell  it  at  value  for  shipment, 


BOARD  OF  TRADE.  59 

the  parties  held  it  until  those  in  the  trade  doubted  its  sound  condition, 
when  it  became  almost  unsalable.  The  entire  wheat  trade  of  Chicago 
was  prostrated — the  price  of  No.  2  spring  declining  to  85  cents  per 
bushel.  Trade  was  diverted  from  this  city.  Exporters  and  Eastern 
buyers  were  warned  as  to  the  quality  of  our  wheat,  and  Western  ship- 
pers would  not  ship  here,  for  the  reason  that  the  poor  wheat  here  drag- 
ged down  to  its  own  level  the  price  of  the  good. 

It  was  not  until  after  such  wheat  was  declared  to  be  hot  and  out  of 
condition,  and  non-deliverable  on  contracts  for  No.  2  spring  wheat,  that 
consumers  and  exporters  dare  send  orders  here,  and  country  t-hippers  felt 
safe  to  make  consignments  of  good  wheat  to  this  market.  The  direct 
and  indirect  injury  to  the  commercial  interests  of  this  city  growing  out 
of  this  single  corner  transaction  is  beyond  computation. 

Evidence  of  a  similar  character,  going  to  illustrate  the  evils  and  dis- 
astrous results  of  corners,  could  be  multiplied  indefinitely,  but  sufficient 
has  already  been  presented  to  convince  every  one  that  it  is  a  practice 
which  should  be  universally  discountenanced  and  condemned,  as  being 
inimical  to  the  interests  of  the  business  community. 


A  WORD  OF  CAUTION  TO  "SHORT  SELLERS." 

It  is  an  error  to  suppose  that  under  the  rules  of  the  Board  of  Trade, 
sellers  can  with  impunity  default  in  delivering  property  which  they  have 
sold,  or  have  contracted  to  deliver.  The  tenor  and  spirit  of  the  rules  are 
that  contracts  must  be  fulfilled  by  actual  delivery  of  property,  unless  pre- 
vious to  their  maturity,  they  have  been  closed  or  settled.  If  margins  are 
deposited  as  required  a  contract  cannot  be  settled  or  closed  before  ma- 
turity, without  consent  of  both  parties  to  it,  except  by  actual  delivery  of 
property,  made  in  accordance  with  the  rules.  Rule  xxvi,  provides  "in 
case  any  property  for  future  delivery  is  not  delivered  at  maturity  of  con- 
tract, the  purchaser  may  at  his  option  declare  the  contract  forfeited;  or 
he  may  purchase  the  property  on  the  market  for  account  of  the  seller  by 
one  o^clock  of  the  next  business  day,  notifying  him  at  once  of  such  pur- 


60  LAWS  OF  TRADE. 

chase;  or  he  may  require  a  settlement  with   the    seller   at   the    average 
market  price  on  the  day  of  the  maturity  of  the  contract." 

A  subsequent  section  provides  that  the  forgoing  "shall  not  be  con- 
strued as  authorizing  unjust  or  unreasonable  claims  based  upon  manipu- 
lated or  fictitious  markets.  The  rules  further  provide  that  in  case  of  dis- 
putes the  committee  of  arbitration  in  determining  the  legitimate  value  of 
pruperty  shall  consider  its  value  in  other  markets,  or  for  manufacturing 
purposes  in  this  market,  together  with  such  other  facts  as,  may  justly  en- 
ter into  ths  determination  of  its  true  value,  irrespective  of  any  fictitious 
price  it  may  at  the  titre  be  selling  for  in  this  market.  Provided,  that  in 
case  of  default  on  contracts  for  future  delivery,  if  it  shall  not  be  shown 
that  the  seller  had  provided  by  previous  purchase  of  the  property  for  de- 
livery on  his  contract,  he  shall,  in  the  judgment  of  the  committee,  be  lia- 
ble to  pay  as  penalty  for  such  default,  damage,  not  exceeding  five  (5)  per 
cent,  of  the  value  of  the  property  sold.  From  the  rules  quoted  it  will  be 
noticed  that  they  are  designed  not  only  to  prevent  "corners,"  but  are  as 
well  calculated  to  prevent  selling  the  market  down  on  the  last  day  of  the 
month  for  the  purpose  of  establishing  a  low  average  market  as  a  basis  for 
the  settlement  of  contracts.  Corners  are  not  only  to  be  avoided,  but 
their  converse  is  to  be  prevented  as  well.  The  plain  object  of  the  rules 
is  to  insure  to  buyers  the  delivery  of  property  purchased  for  shipment, 
for  consumption,  or  for  other  legitimate  purposes,  and  to  force  the  seller 
to  provide  for  the  specific  fulfillment  of  his  contract.  We  should  men- 
tion, that  since  in  force,  said  rules  have  been  construed  by  the  Commit- 
tee of  Arbitration  as  much  as  possible  in  favor  of  the  buyer  and  parties 
who  have  defaulted  in  their  deliveries,  have  been  made  to  pay  damages 
to  the  full  extent  permitted  by  the  rule. 


BOARD  OF  TRADE.  61 

DEALS    OF    THE    CURBSTONE    BROKERS. 

COMMONLY    CALLED 

"PUTS  AND    CALLS." 

We  have  on  preceding  pages  given  a  detailed  explanation  of  the 
reprehensible  business  of  operating  by  means  cf  "Puts  and  Calls."  But 
as  there  is  a  crowd  of  outsiders  whose  only  occupation  it  would  appear, 
is  to  engage  in  this  disreputable  vocation,  we  desire  to  make  further  re- 
marks thereupon.  Honorable,  conscientious,  reliable  dealers  and  opera- 
tors are  averse  to  this  illegitimate  mode  of  doing  business.  It  is  the 
touch  of  pitch  that  defileth.  This  business  is  managed  and  manipulated 
chiefly  by  those  who  have  lost  their  moral  courage  and  have  sought  refuge 
ln  this  demoralizing  and  nefarious  business,  where  there  is  but  a  gleam  of 
a  chance,  or  a  delusive  hope  of  making  a  hit.  Together  with  shysters, 
green-cloth  gentry  and  fleecers  generally.  The  occupation  is  so  thoroughly 
that  of  a  gamester  that  anybody  possessing  a  "five  spot"  from  a  pimp  to 
a  professor  may  try  his  luck  at  the  game.  On  the  court  adjoining,  and 
under  the  shadow  of  the  stately  Chamber  of  Commerce  building  these 
"operators"  "run  the  mill"— a  motley  assemblage  of  broken-down  mer- 
chants, sleek  "fellers"  of  the  town,  collapsed  clerks,  desperate  "borrow- 
ers," who  are  striving  to  "make  it  good"  by  a  lucky  deal,  callow  youths 
with  their  week's  wages,  anxious  to  invest  in  a  "put,"  and  a  very  small 
sprinkling  of  respectable  men  who  look  ashamed  of  the  company  they 
are  in.  'Tis,  indeed,  not  a  scene  for  a  painter,  but  for  a  whitewasher  or 
a  calciminer. 

There  from  morning  till  night  they  shout  and  shuffle,  figure  and  fulmi- 
nate, wager  and  wriggle, — do  they  deal  in  grain  or  produce?  Not  a  bit 
of  it.  These  "puts"  are  simply  the  private  agreements  by  men  of  small 
means;  of  those  who  wish  to  speculate  but  are  really  unable  to  either 
buy  or  sell,  and  so  use  these  engagements  as  a  wagering  insurance  policy 
— to  cover  what  they  call  their  "deals  "  The  price  at  which  the  party 
issuing  such  tickets  is  either  above  the  true  price  or  supposed  value  of 
the  grain,  in  case  the  privilege  is  to  buy  of  him,  or  below  that  value  as 
he  estimates  it,  in  case  it  is  a  privilege  to  sell  to  him,  the  price  being  de- 
pendent upon  the  length  of  the  period  for  which  it  is  given,  or  the  time 


62  LAWS  OF  TKADE. 

•\ 

of  year,  and,  of  course,  upon  the  opinions  of  the  party  as  to  that  value, 
and  as  to  the  chances  of  the  rise  or  fall  of  the  price  of  the  commodity. 

The  "put"  will  be  converted  into  a  contract  ;  in  other  words,  the 
"privilege"  to  take  or  to  deliver  will  be  claimed,  only  in  the  contingency 
that  the  seller  of  the  "put"  is  mistaken  about  the  future  price  of  the 
grain  about  which  he  has  made  this  wager,  and  then  the  successful  games- 
ter may  assert  bis  "privilege;"  then  the  contract  is  born,  and  may  be  ad- 
justed by  the  payment  of  differences,  and  this  is  the  usual  way;  or,  it 
may  be  broken,  and  then  the  differences  are  ascertained  by  a  resale,  and 
thus  adjusted.  This  modus  operandi  was  formerly  in  vogue  on  the  regu- 
lar Board,  but  it  is  not  now  recognized  or  permitted,  nor  any  transactions 
resulting  from  "Puts  and  Calls,"  in  fact  such  operations  are  in  direct  vio- 
lation of  the  statutes  of  the  State.  To  such  an  extent,  does  this  custom 
go  that,  notwithstanding  the  business  of  the  greatest  of  grain  markets  is 
conducted  upon  the  Board,  and  immense  quantities  of  the  actual  grain 
are  there  bought  and  sold,  for  consumption,  for  shipment,  for  legitimate 
speculation,  by  legitimate  contracts,  yet  it  is  a  fact  that  not  exceeding  one 
in  ten,  and  probably  not  one  in  a  hundred  of  the  contracts  there  made  is 
wound  up  by  the  delivery  of  the  grain ;  but  so  great  is  this  speculative 
movement,  that  sometimes  the  amount  of  a  given  grain  is  bought  and 
sold  during  a  day,  that  it  actually  encroaches  upon  the  amount  which 
comes  to  the  market  during  the  season,  and  the  actual  business  of  a  Board 
professing  to  deal  in  grain  is  well  represented  as  resembling  a  bank 
"clearing  house,"  in  which  the  differences  are  ascertained,  adjusted,  and 
divided  in  money;  in  which  the  contracts  are  consumated  not  by  the  de- 
livery of  the  grain,  but  by  the  payment  of  the  money,  found  to  be  the 
differences  upon  the  wagering  contracts  touching  grain  between  the  sev- 
eral gamesters. 

To  the  credit  of  the  Board,  be  it  said,  there  are  but  very  few  mem- 
bers who  deal  in  these  "puts,"  which  have  been  the  means  of  bringing 
moral  and  financial  ruin  upon  so  many  men  who  once  stood  high  in  the 
confidence  and  esteem  of  the  community,  but  these  few  are  by  that  num- 
ber too  many,  and  they  ought  to  be  "sat  down  on"  by  the  Board.  .  Let  it 
entirely  clear  its  skirts  of  the  abomination,  and  relegate  to  the  outside 
all  such  infamous  business  transactions.  Such  matters  would  not  only 
trample  upon  the  dignity,  but  sully  the  good  name  of  the  Board.  The 
Board  should  therefore  jealously  and  zealously  guard  its  reputation.  The 
whole  thing  is  disgraceful  and  demoralizing.  How  many  a  poor,  soul- 
racked,  conscience-smitten  fugitive  from  justice  can  trace  the  beginning 


BOARD  OF  TRADE.  63 

of  his  downfall  to  speculations  of  this  character.  At  first  they  hazard 
but  small  amounts,  and  cautiously.  But  they  soon  launch  out  more  boldly 
and  become  servile  to  the  infatuation.  More  money  must  be  had,  and  in 
an  evil  moment  the  funds  of  the  institution  or  business  house  with  which 
the  doomed  speculator  is  connected  are  "borrowed,"  but  never  returned. 
The  inevitable  denouement  is,  discovery,  flight,  disgrace  and  irretrievable 
ruin.  One  of  the  worst  features  of  this  disreputable  business  is,  that 
many  honest  men  are  insidiously  demoralized  by  it.  The  disposition  of 
men  who  have  been  unfortunate  and  unsuccessful  in  their  legitimate 
transactions,  or  who  have  met  with  financial  reverses^  is  to  go  into  some 
speculative  scheme  with  the  object  in  view  to  retrieve  their  shattered 
fortunes.  They  have  chararacteristic  compunctions  against  "bucking  the 
tiger"  outright,  in  fact,  they  have  no  knowledge  of  such  "tricks  that  are 
vain."  But  they  have  heard  of  fabulous  wealth  acquired  by  speculating 
in  grain,  and  are  tempted  to  try  their  luck  just  once  in  this  direction.  It 
may  be,  they  think,  that  the  fickle  gcddess  will  favor  them  and  give  them 
a  lift  that  will  bring  them  right  out  of  their  embarrasment.  Cajoling 
themselves  with  the  idea  that  it  is  not  downright  gambling,  but  only  a 
little  harmless  speculation,  requiring  no  great  judgment  or  experience, 
they  scrape  together  all  the  money  they  can  raise  and  "spank  it  up"  for 
a  "privilege."  They  are  disappointed  in  the  result;  it  doesn't  "pan  out" 
as  they  hoped.  But  they  are  in  a  desperate  strait  and  are  determined  to 
hazard  the  throw  just  once  more.  Perhaps  in  so  doing  they  get  some- 
thing back,  and  now  flatter  themselves  that  their  luck  has  turned  .So 
they  go  on  slep  by  step,  getting  in  deeper  and  deeper,  and  in  their  reck- 
less desperation  sacrificing  everything  they  can  lay  their  hands  on,  finding 
in  the  end  that  they  have  nothing  but  dead-sea  fruit,  which  turns  to  ashes 
in  the  grasp! 

Now,  if  these  same  men  had  stuck  to  their  legitimate  business  and 
shown  true  moral  courage  in  buffeting  the  waves  of  adversity,  instead  of 
rushing  into  this  ruinous  speculation,  they  would  have  been  far  more 
likely  to  get  a  firm  financial  footing  again  than  by  taking  their  chances 
in  the  arena  of  the  gamesters.  This  speculative  mania  seems  to  have 
seized  upon  thousands  of  people.  Honorable,  legitimate  trading  becomes 
distasteful  to  them.  The  slow  and  sure  "old-fashioned"  methods  of  doing 
business  are  too  tedious  and  irksome.  They  are  crazy  to  get  rich  speedily. 
They  expect  something  for  nothing,  but  find,  alas!  that  they  get  nothing 
for  something.  When  will  men  learn  that,  whatever  their  pecuniary  cir- 
cumstances may  be,  the  "good  old  way  of  accumulating  means  by  honest, 
straightforward,  persistent  effort  and  labor  is  the  right  and  only  sure  road 
to  competence? 


RULES  GOVERNING  THE  INSPECTION  W  GRAIN 

IN  THE  CITY  OP  CHICAGO. 
In  force  from  and  after  August  10,  1877. 


The  following  are  the  rules  adopted  by  the  Board  of  Railroad  and 
Warehouse  Commissioners,  establishing  a  standard  of  grades  for  the  in- 
spection of  grain,  under  the  authority  of  the  State  of  Illinois: 

WINTER  WHEAT. 

No.  1  White  Winter  Wheat  stall  be  pure  White  Winter  Wheat, 
sound,  plump,  ahd  well  cleaned. 

No.  2  White  Winter  Wheat  shall  be  pure  White  Winter  Wheat, 
sound  and  reasonably  clean. 

No.  1  Red  Winter  Wheat  shall  be  pure  Winter  Wheat,  red,  or  red 
and  white  mixed,  sound,  plump,  and  well  cleaned. 

No.  2  Red  Winter  Wheat  shall  be  pure  Winter  Wheat,  red,  or  red 
and  white  mixed,  sound,  and  reasonably  clean. 

Amber  Wheat,  Nos.  1  and  2,  shall  include  the  lighter  colored  varie- 
ties of  Red  Wheat;  quality  and  condition  to  be  equal  to  the  present 
standard  of  Nos.  1  and  2  Red  Winter  Wheat. 

No.  3  Winter  Wheat  shall  include  Winter  Wheat  not  clean  and  plump 
enough  for  No.  2,  and  weighing  not  less  than  54  pounds  to  the  measured 
bushel. 

Rejected  Winter  Wheat  shall  include  Winter  Wheat  damp,  musty, 
or  from  any  cause  so  badly  damaged  as  to  render  it  unfit  for  No.  3. 


BOARD  OF  TRADE.  65 

SPRING  WHEAT. 

No.  1  Hard  Spring  Wheat  shall  be  sound,  plump,  and  well  cleaned. 

No.  2  Hard  Spring  Wheat  shall  be  sound,  reasonably  clean  and  of 
good  milling1  quality. 

No.  1  Spring  Wheat  shall  be  sound,  plump  and  well  cleaned. 

No.  2  Spring  Wheat  shall  be  sound,  reasonably  clean,  and  of  good 
milling  quality. 

No.  3  Spring  Wheat  shall  include  all  inferior,  shrunken  or  dirty 
Spring  Wheat,  weighing  not  less  than  53  pounds  to  the  measured  bushel. 

Rejected  Spring  Wheat  shall  include  Spring  Wheat  damp,  musty, 
grown,  badly  bleached,  or  for  any  other  cause  which  renders  it  unfit  for 
No.  3.' 

In  case  of  mixture  of  Spring  and  Winter  Wheat,  it  will  be  called 
Spring  Wheat,  and  graded  according  to  the  quality  thereof. 

Black  Sea  and  Flinty  Pffe  Wheat  shall  in  no  case  be  inspected 
higher  than  No.  2,  and  Rice  Wheat  no  higher  than  Rejected. 

CORN. 

No.  1  Yellow  Corn  shall  be  yellow,  sound,  dry,  plump  and  well 
cleaned. 

No.  1  White  Corn  shall  be  white,  sound,  dry,  plump  and  well 
cleaned. 

High  Mixed  Corn  shall  be  three-quarters  yellow  and  equal  to  No.  2 
in  condition  and  quality. 

No.  2  Corn  shall  be  dry,  reasonably  clean,  but  not  plump  enough 
for  No.  1. 

No.  2  Kiln  Dried  Corn  shall  be  sound,  plump  and  well  cleaned. 
White  or  Yellow.  All  kiln  dried  corn  not  good  enough  for  No.  2  kiln- 
dried  shall  be  graded  as  Rejected  kiln-dried  Corn. 

New  High  Mixed  Corn  shall  be  three-fourths  yellow,  of  any  age, 
and  shall  be  reasonably  clean,  but  not  sufficiently  dry  for  "High  Mixed  or 
No.  2." 

New  Mixed  Corn  may  be  less  than  three-fourths  yellow,  of  any  age, 
and  shall  be  reasonably  dry  and  reasonably  clean,  but  not  sufficiently  dry 
for  No.  2. 

Rejected — All  damp,  dirty  or  otherwise  badly  damaged  Corn  shall  be 
graded  as  Rejected. 


66  LAWS  OF  TRADE. 

OATS. 

No.  1  Oats  shall  be  white,  sound,  clean,  and  reasonably  free  from 
other  grain. 

No.  2  White  Oats  shall  be  three-quarters  white  and  equal  to  No.  1 
in  all  other  respects. 

No.  2  Oats  shall  be  sound,  reasonably  clean,  and  reasonably  free 
from  other  grain. 

Rejected — All  Oats,  damp,  unsound,  dirty  or  for  any  other  cause  un- 
fit for  No.  2,  shall  be  graded  as  Rejected. 

RYE. 

No.  I  Rye  shall  be  sound,  plump  and  well  cleaned. 

No.  2  Rye  shall  be  sound,  reasonably  clean,  and  reasonably  free  from- 
other  grain. 

Rejected — All  Rye,  damp,  musty,  dirty,  or  from  any  cause  unfit  for 
No.  2,  shall  be  graded  as  Rejected. 

BARLEY. 

No.  1  Barley  shall  be  plump,  bright,  sound,  clean,  and  free  from 
other  grain. 

No.  2  Barley  shall  be  sound,  bright,  not  plump  enough  for  No.  1T 
reasonably  clean  and  reasonably  free  from  other  grain. 

Extra  No.  3  Barley  shall  include  slightly  shrunken  and  otherwise 
slightly  damaged  Barley  not  good  enough  for  No.  2. 

No.  3  Barley  shall  include  shrunken,  or  otherwise  damaged  Barley, 
weighing  not  less  than  41  pounds  to  the  measured  bushel. 

Feed  Barley  shall  include  all  Barley  which  is  damp  or  from  any 
cause  badly  damaged  or  unfit  for  malting  purposes,  or  which  is  largely 
mixed  with  other  grain. 


The  word  "  new"  shall  be  inserted  in  each  certificate  of  inspection  of 
a  newly  harvested  crop  of  Oats  until  the  15th  day  of  August;  of  Rye, 
until  the  1st  day  of  September;  of  Wheat  until  the  1st  day  of  November; 
and  of  Barley  until  the  1st  day  of  May  of  each  year.  This  change  shall 
be  construed  as  establishing  a  new  grade  for  the  time  specified,  to  conform 


BOARD  OF  TRADE.  67 

in  every  particular  to  the  existing  grades  of  grain,  excepting  the  distinc- 
tions of  "new"  and  "old." 

All  grain  that  is  warm  or  that  is  in  a  heating  condition,  or  is  other- 
wise unfit  for  warehousing,  shall  not  be  graded. 

All  Inspectors  shall  make  their  reasons  for  grading  grain,  when 
necessary,  fully  known  by  notations  on  their  books.  The  weight  alone 
shall  not  determine  the  grade. 

Each  Inspector  is  required  to  ascertain  the  weight  per  measured 
bushel  of  each  lot  of  wheat  inspected  by  him,  and  note  the  same  in  his 
book. 

Any  person  who  shall  assume  to  act  as  an  Inspector  of  Grain,  who 
has  not  first  been  so  appointed  and  sworn,  shall  be  held  to  be  an  impostor, 
and  shall  be  punished  by  a  fine  of  not  less  than  $50  nor  more  than  $100 
for  each  and  every  attempt  to  so  inspect  grain,  to  be  recovered  before  a 
justice  of  the  peace. 

Any  duly  authorized  Inspector  of  Grain,  who  shall  bo  guilty  of  ne- 
glect of  duty,  or  who  shall  knowingly  or  carelessly  inspect  or  grade  any 
grain  improperly,  or  who  shall  accept  any  money  or  other  consideration, 
directly  or  indirectly,  for  any  neglect  of  duty  or  for  the  improper  perform- 
ance of  any  duty  as  Inspector  of  Grain,  and  any  person  who  shall  improp- 
erly influence  any  Inspector  of  Grain  in  the  performance  of  his  duties  as 
such  Inspector,  shall  be  deemed  guilty  of  a  misdemeanor,  and,  on  convic- 
tion, shall  be  fined  in  a  sum  of  not  less  than  $100  nor  more  than  $1,000, 
in  the  discretion  of  the  court,  or  shall  be  imprisoned  in  the  ccunty  jail  not 
less  than  three  nor  more  than  twelve  m.  nths,  or -both,  in  the  discretion  of 
the  court. 

All  Assistant  Inspectors,  when  upon  duty,  shall  wear  a  badge  fur- 
nished by  the  Chief  Inspector,  plainly  designating  the  position  of  each  in 
the  department. 

The  said  Chief  Inspector,  and  all  persons  inspecting  grain  under  bin 
direction,  shall  in  no  case  make  the  grade  of  grain  above  that  of  the  poor- 
est quality  found  in  any  lot  of  grain  when  it  has  evidently  been  mixed  or 
doctored  for  the  purpose  of  deception. 

All  persons  employed  in  the  inspection  of  grain  shall  report  all  at- 
tempts to  defraud  the  system  of  grain  inspection  as  established  by  law. 
They  shall  also  report  to  the  said  Chief  Inspector,  in  writing,  all  instances 
where  warehousemen  deliver  or  attempt  to  deliver,  grain  of  a  lower  grade 
than  that  called  for  by  the  warehouse  receipt.  They  shall  also  report  all 
attempts  of  receivers  or  shippers  of  grain  to  instruct  or  in  any  way  infln- 


68  LAWS  OF  TRADE. 

ence  the  action  or  opinion  of  the  Inspector,  and  the  Chief  Inspector  shall 
report  all  such  cases  to  the  Commissioners. 

RAILROAD  AND  WAREHOUSE  COMMISSIONERS  OP  ILLINOIS. — Wm.  M. 
Smith,  J.  H.  Obeily,  George  M.  Bogue. 

CHIEF  INSPECTOR  OF  GRAIN. — John  P.  Reynolds. 

COMMITTEE  OF  APPEALS  ON  GRAIN  INSPECTIONS. — P.  W.  Dater, 
S.  D.  Foss,  T.  H.  Seymour. 


AMENDMENT 

To  Rule  Two  (2)  of  the  Rules  Governing  the  Inspection  of  Grain  in  the  City  of  Chicago, 
to  tak*  effect  October  1,  1878. 

RULE  II.— SPRING  WHEAT. 

No.  1  Hard  Spring  Wheat  shall  be  sound,  plump  and  well  cleaned. 

No.  2  Hard  Spring  Wheat  shall  be  sound,  reasonably  clean,  and  of 
good  milling  quality. 

No.  1  Spring  Wheat  shall  be  sound,  plump  and  well  cleaned. 

No.  2  Spring  Wheat  shall  be  sound,  reasonably  clean,  and  of  good 
milling  quality. 

No.  3  Spring  Wheat  shall  include  all  inferior,  shrunken,  or  dirty 
Spring  Wheat  weighing  not  less  than  53  pounds  to  the  measured  bushel. 

Rejected  Spring  Wheat  shall  include  Spring  Wheat  da'mp,  musty, 
grown,  badly  bleached,  or  for  any  other  cause  which  renders  it  unfit  for 
No.  3. 

In  case  of  mixture  of  Spring  and  Winter  Wheat  it  shall  be  called 
mixed  Wheat,  and  graded  according  to  the  quality  thereof.  This  rule 
shall  be  in  force  on  and  after  Oct.  1,  1878;  but  it  is  provided  that  all 
Wheat  in  store  on  said  date,  inspected  in  as  Spring  Wheat  under  the  rule 
hereby  amended,  shall  be  inspected  out  in  accordance  with  the  provisions 
of  said  rule  as  Spring  Wheat. 

Black  Sea  and  Flinty  Pjlfe  Wheat  shall  in  no  case  be  inspected 
higher  than  No.  2,  and  Rice  Wheat  no  higher  than  rejected. 

W.   M.  SMITH, 
GEORGE  M.  BOGUE, 
JOHN  H.  OBERLY, 
Railroad    and    Warehouse  Commissioners. 

Chicago,  111.,  Sept.  6,  1878. 


BOARD  OF  TRADE. 


69 


WEIGHTS. 

Established  by  Law  in  the  State  of  Illinois  for  the  bushel  of  the  follow- 
ing Articles. 


ARTICLES. 
Wheat  

Lbs. 

60 

ABTICLES. 

LbB. 
60 

Shelled  Corn  

56 

Timothy  Seed  

45 

Ear  Corn  

70 

Flax  Seed  

56 

Oats  

32 

Hump  Seed  ,  

44 

Rye  

56 

14 

Barley  

48 

White  Beans  

60 

Buckwheat  

52 

Castor  Beans  

46 

Malt  

38 

Irish  Potatoes  

60 

Corn  Meal  

48 

Sweet  Potatoes  

55 

Bran  

20 

Turnips  

55 

Dried  Apples  

24 

Onions  

57 

Dried  Peach  es  

33 

50 

Lime  (nnslacked)  

80 

Fine  Salt.... 

55 

LAWS  OF  TRADE. 
KATES  OF  INSPECTION. 

GRAIN. 

For  inspecting  grain  from  cars,  per  car. ...   $025 

For  inspecting  grain  from  wagons,  per  load 10 

For  inspecting  grain  aboard  of  vessels,  per  M  bushels * 40 

For  inspecting  grain  from  c  nal  boat* 40 

For  inspecting  grain  in  sacks,  per  bushel M 

For  inspecting  grain  to  cars,  in  bulk,  per  car 30 

For  inspecting  gr-ain  to  ttams,  per  car 30 

For  inspecting  grain  to  teams,  per  load 10 

FLOUR. 

For  inspecting  flour,  per  barrel $0  02 

For  inspecting  flour,  per  sack 01 

PROVISIONS. 

For  inspecting  beef  and  pork— for  the  first  five  barrels,  per  barrel 1  00 

For  insp  cting  beef  and  pork — for  each  additional  barrel 50 

For  inspecting  bulk  or  boxed  meals,  per  M  pounds . .      25 

For  inspecting  lard,  tallow  and  grease,  per  package 05 

For  stripping  lard,  tallow  and  grease,  per  package 1  00 

HIGHWINES. 
For  inspecting  iiighwines,  per  barrel : 10 


WEIGHMASTER'S    TARIFF    OF    PRICES. 


Sundries,  weighed  on  platform  and  beam  scales,  and  handled  at  the  ex- 
pense of  the  Weighmaster,  will  be  charged  as  follows: 

Grain,  seed,  beans,  potatoes,  and  similar  articles,  in  bags,  per  bag $0  02 

Sugar,  in  hogsheads  and  boxes,  per  100  pounds 02 

Salt,  in  sacks,  per  100  pounds 02 

Pig  iron  and  lead,  per  100  pounds 02 

Bulk  or  boxed  meats,  per  100  pounds 02 

Broom  corn,  in  lots  of  50  bales  or  more,  per  bale 06 

Broom  corn,  in  lots  of  less  than  50  bales,  per  bale 07 

Wool,  per  sack,  in  lots  of  50  or  more  07 

Wool,  per  sack,  in  lots  of  less  than  50 08 

Coal  and  salt,  per  ton 05 

Lard,  tallow,  grease  and  stearine,  per  package. . .    05 

Butter  and  lard,  in  ktgs,  each 04 

Dressed  hogs,  each 02 

Salt,  sugar,  dried  fruit,  and  similar  artic  es,  per  barrel 04 

For  weighing  grain  to  vessels,  by  cargo,  from  elevators,  per  M  bushels 25 

For  weighing  grain  from  canal  boats,  per  boat 1  00 


INSPECTION  OF  FLOUR  IN  CHICAGO, 

Adopted  by  the  Board  of  Trade,  May  21,  1878. 


TO  TAKE  EFFECT  JUNE  1,  1878. 


REGULATION  I. 

GRADES. — The  Board  of  Directors  shall  establish  and  fix  the  standards 
for  two  grades  of  "  Super"  Flour  and  two  grades  of  "  Extra"  Flour,  to  be 
designated  respectively  "  Fine,"  "  Superfine,"  "  Extra,"  and  "  Double 
Extra."  Samples  of  these  standards  shall  be  furnished  to  the  Flour  In- 
spectors for  their  government  in  inspecting,  and  also  to  the  Secretary  of 
the  Association,  to  be  kept  by  him  for  comparison. 

REGULATION  II. 

INSPECTION  COMMITTEE. — The  Board  of  Directors  shall  appoint  a 
standing  committee  on  Flour  Inspection,  to  consist  of  five  members,  at 
least  three  of  whom  shall  be  dealers  in  Flour.  Said  committee  shall  have 
and  exercise  a  general  control  of  the  Inspection  of  Flour. 

REGULATION  III. 
FLOUR  TO  INSPECT  AS  SOUND  — Flour  classed  as  sound  shall  be  strictly 


72  LAWS  OF  TRADE. 

sound,  free  from  any  and  every  defect  or  fault,  causing  either  smell  or 
taste. 

REGULATION  IV. 

FLOUR  TO  INSPECT  AS  UNSOUND. — All  Flour  not  sound,  whether  the 
unsoundness  be  derived  from  the  condition  of  the  grain  from  which  it 
was  manufactured,  or  has  originated  in  the  Flour,  shalbbe  classed  as  un- 
sound. 

REGULATION  V. 

INSPECTION. — The  Inspectors  of  Flour  shall  inspect  "  Superfine"  and 
"  Extra"  by  grade  only.  "Fine"  or  "  Double  Extra"  may  be  inspected 
by  grade  or  by  sample,  as  requested  by  the  party  ordering  the  inspection. 
Samples  of  all  Flour  inspected  shall  be  furnished  by  the  Inspectors  to 
the  party  ordering  the  inspection. 

REGULATION  VI. 

BRANDING. — The  Inspectors  shall  brand  all  Flour,  except  that  below 
the  standard  of  "Fine"  that  has  been  inspected  as  "sound"  and  "full 
weight,"  and  none  other.  For  branding,  stencils  shall  be  used  which 
shall  state  the  month  in  which  the  Fiour  was  inspected,  and  on  "  Super- 
fine" and  "  Extra"  shall  also  state  the  grade  of  the  Flour. 

REGULATION  VII. 

CERTIFICATES  OF  INSPECTION. — Certificates  of  Inspection  shall  be 
issued  only  as  "  Superfine"  or  "  Extra"  on  all  Flour  so  graded.  Certificates 
may  be  issued  by  grade  or  by  sample,  as  desired  by  the  party  ordering 
the  inspection,  on  any  Flour  inspecting  "  Double  Extra"  "  Fine"  or  below 
"  Fine;"  but  when  issued  by  grade  the  Flour  shall  be  branded  as  of  the 
grade.  No  certificate  shall  be  issued  for  part  of  any  lot  of  Flour  in- 
spected, without  the  consent  ol  both  the  buyer  and  seller.  When  Flour  is 
unsound,  the  Inspectors  shall  state  in  their  certificates  the  character  of 
the  unsoundness,  as  musty,  hard  sour,  soft  sour,  or  slightly  unsound,  (the 
latter  qualification  of  the  unsoundness  being  intended  to  indicate  that  the 
Flour  will  probably  work  sound  for  immediate  use,  ard  is  but  slightly  de- 
preciated in  value,)  the  number  of  packages  of  each  description,  and  also, 
when  practicable^  the  number  of  packages  that  may  be  so  stained  or  out 


BOARD  OF  TRADE.  7$ 

of  condition  as  to  depreciate  the  market  value  of  the  Flour.  In  case  the 
Flour  has  been  overhauled  and  cleaned  on  account  of  having  been  wet, 
and  the  Inspectors  shall  deem  such  overhauling  in  any  way  damaging  to 
the  market  value  of  the  Flour,  they  shall  note  on  their  certificates  "  wet 
and  cleaned."  If  Flour  is  in  flat-hooped  barrels  the  Inspectors  shall  so 
note  in  their  certificates. 

REGULATION  VIII. 

RE-INSPECTION. — When  on  re-inspection  Flour  is  found  to  be  sourr 
it  shall  be  re-weighed,  but  no  charge  shall  be  made  by  the  Inspectors  for 
weighing,  if  it  proves  to  be  short  in  weight. 

REGULATION  IX. 

WEIGHTS. — A  barrel  of  Flour  shall  be  deemed  to  weigh  one  hun- 
dred and  ninety-six  (196)  pounds  net,  and  no  allowance  shall  be  made  for 
any  overweight.  In  case  of  short  weights,  the  buyer  shall  be  allowed  for 
the  shortage  at  the  rate  he  pays  and  one-half  a  cent  per  pound  on  the 
same  for  freight,  and  in  addition  five  (5)  cents  per  barrel  for  the  expense 
of  refilling.  Buyers  of  sacked  Flour  shall  be  allowed  reclamacion  for 
short  weights  only.  The  Inspectors  shall  satisfy  themselves  in  regard  to 
weights,  and  in  case  they  deem  it  necessary  to  strip  some  of  the  Flour,, 
they  shall  strip  (5)  barrels  from  each  lot,  and  shall  be  entitled  to  fifteen 
(15)  cents  for  each  barrel  so  stripped ;  if  it  proves  to  be  short  in  weight^ 
the  charge  for  stripping  to  be  paid  by  the  seller. 

REGULATION    X. 

INSPECTOR'S  FEES. — The  fee  for  inspecting  and  branding  Flour  shall 
be  two  (2)  cents  per  barrel,  and  for  Flour  in  sacks  one  (1)  cent  per  sack. 

REGULATION  XI. 

IRREGULAR  FLOUR. — When  Flour  inspects  "  Double  Extra,"  "  Fine" 
or  below  "  Fine,"  or  when  the  Inspectors  are  working  to  a  sample,  in  case 
the  Flour  does  not  run  uniform,  the  Inspectors  shall  note  that  fact  on 
their  certificates,  together  with  the  number  of  packages  of  each  quality, 
samples  of  which  shall  be  submitted  to  the  party  ordering  the  inspection, 
for  examination. 


74  LAWS  OF  TRADE. 

REGULATION  XII. 

FURTHER  DUTIES  OP  INSPECTORS. — It  shall  be  the  duty  of  In- 
spectors to  furnish  the  standard  samples  of  Flour  to  which  they  are  work- 
ing to  the  Committee  on  Flour  Inspection,  for  the  use  of  the  Secretary  of 
the  Association,  monthly  or  oftener  if  directed,  and  also  to  keep  in  their 
office,  for  the  accommodation  of  the  trade,  the  official  standard  samples  of 
"Double  Extra,"  "Extra,"  "Superfine,"  and  "Fine"  Flour  in  current 
use  in  New  York,  Boston,  Philadelphia,  Baltimore,  St.  Louis  and  Mon- 
treal; said  samples  to  be  furnished  by  the  Secretary  of  the  Association. 
It  shall  be  the  further  duty  of  the  Inspectors  to  ascertain  the  stock  of 
Flour  in  Chicago  on  the  first  day  of  each  month,  and  to  report  the  same 
to  the  Secretary  of  the  Association,  to  be  by  him  posted  upon  the  bulle- 
tin of  the  Exchange  room.  In  taking  the  account  of  stock  there  shall  be 
included  only  the  amount  in  the  several  freight  depots,  the  public  ware- 
houses and  the  places  of  storage  by  receivers,  and  in  the  city  mills.  The 
Inspectors  shall  also  furnish  to  the  Secretary  of  the  Association,  monthly, 
a  statement  of  the  number  of  barrels  and  the  number  of  sacks  of  Flour 
inspected  by  them  during  the  preceding  month,  designating  the  amount 
inspected  of  each  grade,  and  the  amount  inspected  by  sample. 

REGULATION  XIII. 

LIABILITIES  OF  INSPECTORS. — The  Inspectors  shall  only  be  liable  for 
damages  for  any  discrepancy  between  the  Flour  for  which  a  certificate  is  is- 
sued and  the  sample  they  retain  of  the  Flour  so  inspected,  unless  the  buyer 
furnishes  them  a  sample  to  inspect  by,  or  the  standard  sample  is  used.  In 
.all  claims  for  errors  of  inspection  by  grade,  the  final  test  shall  be  by  the 
standard  samples  in  the  care  of  the  Secretary  of  the  Association. 

REGULATION   XIV. 

All  former  regulations  governing  the  inspection  of  Flour  are  hereby 
.annulled — to  take  effect  June  1,  1878. 


COMMITTEE  ON  FLOUR  INSPECTION  FOR  1878. 


N.  E.  PLATT,  Chairman. 

THOMAS  HEERMANS,  I.  N.  ASH,  GILBERT  MONTAGUE, 

EDMUND  NORTON. 


REGULATIONS  FOR  THE  INSPECTION  OF  HAY. 


No.  1  Timothy — Shall  be  Timothy,  and  not  more  than  one-fifth  of 
-other  tame  grasses  mixed  ;  good  color,  well  cured,  and  free  from  must. 

No.  2  Timothy — Shall  be  Timothy,  and  not  more  than  one-third  of 
other  tame  grasses  mixed  ;  good  color,  well  cured,  and  free  from  must. 

Mixed  Hay — Shall  consist  of  tame  grasses,  mixed;  good  color,  well 
43ured,  and  free  from  must. 

Prime  Prairie — Shall  be  purely  upland  Hay,  free  from  swail  grasses; 
good  color,  well  cured,  and  free  from  must. 

No.  1  Prairie — Shall  be  upland  and  midland  Prairie  Hay;  good 
color,  well  cured,  and  free  from  must. 

No.  2  Prairie — Shall  be  swail  or  slough  Hay,  either  wholly  or  mixed 
with  upland;  good  color,  well  cured,  and  free  from  must. 

No  Grade  Say — All  kinds  of  Hay,  badly  cured,  stained,  or  in  any 
way  out  of  condition  ;  the  certificate  of  inspection  stating  whether  it  is 
Tame  or  Prairie  Hay. 

All  Hay  that  is  sent  for  inspection  under  the  Rules  of  the  Board 
shall  be  graded,  and  each  separate  bale  marked  with  its  respective  grade 
immediately  when  taken  from  the  car  in  which  it  is  sent  to  this  city.  The 
final  inspection  and  plugging,  in  order  to  ascertain  the  sound  condition 
of  each  bale,  can  take  place  at  any  time  subsequent,  or  at  the  time  of 
shipment. 

All  certificates  of  inspection  shall  give  the  weight  of  each  bale  of 
Hay  weighed  and  inspected.  The  expenses  for  inspection  shall  not  ex- 
ceed thirty  (30)  cents  per  ton  of  two  thousand  (2,000)  pounds,  and  shall 
be  divided  equally  between  buyer  and  seller. 


REGULATIONS  FOR  THE  INSPECTION  OF  PROVISIONS. 


REGULATION  1.  For  the  examination  of  provisions  sold  as  Standard, 
it  shall  be  the  duty  of  any  Inspector  properly  appointed  by  the  Associa- 
tion, on  receiving  notice,  to  go  to  any  packing  house  or  warehouse  in  the 
city,  to  examine  provisions,  in  such  quantities  as  may  be  required,  select- 
ing the  same  in  such  a  manner,  from  the  lots  specified,  as,  in  his  judg- 
ment, will  give  a  fair  sample  of  the  whole. 

REG.  2.  If,  upon  examination,  the  property  is  found,  in  all  respects,. 
up  to  the  requirements  of  the  classification  of  the  grades  adopted  by  the 
Association,  he  shall  issue  a  certificate  to  that  effect,  which  certificate 
shall  state  the  number  of  packages,  pieces  or  pounds  examined,  and  also- 
the  number  of  packages,  pieces  or  pounds  in  the  lot  to  which  the  exami- 
nation is  intended  to  apply,  and  that  the  packages  (if  any)  are  in  good 
merchantable  order  and  condition.  In  the  case  of  Lard,  no  certificate  for 
inspection  shall  be  issued  unless  every  package  is  examined;  but,  on  re- 
quest of  the  owner  or  person  ordering  the  inspection,  the  Inspector  may 
examine  a  part  of  a  lot,  and  issue  a  certificate  of  such  examination,  stat- 
ing the  number  of  packages  examined,  and  also  the  whole  number  of 
packages  in  the  lot. 

REG.  3.  When  necessary  to  remove  property  for  the  convenience  of 
examination,  it  shall  be  the  duty  of  the  Inspector  to  send  for  the  same, 
that  a  fair  sample  may  be  obtained.  In  no  case  should  a  certificate  be 
granted  on  samples  delivered  by  the  seller. 

REG.  4.  The  fees  for  inspection  shall  be  :  For  all  Pickled  Meats  (in- 
cluding repacking  and  coopering),  one  dollar  per  package  for  first  five 
packages.  For  Bulk  or  Boxed  Meats,  twenty-five  cents  per  one  thous- 
and pounds.  For  Lard,  five  cents  per  package.  For  stripping  Lard,  one 
dollar  per  package.  All  inspection  fees  to  be  paid  by  the  buyer  unless 
the  property  is  rejected;  then  to  be  paid  by  the  seller. 

REG.  5.     It  shall  be  the  duty  of  the  Inspector,  when  requested  by 


77  BOARD  OF  TRADE. 

the  owner,  either  at  any  packing  house,  warehouse,  or  in  yards  provided 
by  the  Inspector,  to  overhaul  and  inspect  provisions,  according  to  the 
qualifications  and  classifications  authorized;  two  hundred  pounds  of 
meat,  with  abundance  of  good  salt,  to  be  repacked  into  each  barrel,  and 
cooperage  to  be  put  in  good  order  ;  each  barrel  of  Provisions  that  is 
sound,  sweet  and  free  from  any  and  every  defect,  to  have  grade  and  date 
of  inspection  branded  thereon,  and  the  word  "Repacked,"  as  hereinafter 
specified;  and  any  portion  that  is  defective  to  be  branded,  in  like  man- 
ner, Rusty,  Sour,  or  Tainted,  as  the  case  may  be;  the  said  brand  to  be 
placed  with  the  Inspector's  brand  across  the  regular  packer's  brand  ; 
such  provisions,  according  to  the  grade  or  quality,  to  be  classed  as  "Re- 
packed 200  Ibs." 

REG.  6.  The  Inspectors  shall  use  metallic  letters  and  figures,  mark- 
ing iron  or  stencil  for  their  dates  and  class  of  inspection. 

REG.  7.  It  shall  also  be  the  duty  of  the  Inspector  to  put  his  metallic 
brand,  marking  iron,  or  stencil  on  all  samples  cf  Provisions  in  tierces  or 
barrels  that  he  inspects;  and  he  shall  pass  no  Hog  products  in  tierces  or 
barrels  as  Standard,  unless  the  real  packer's  name,  location,  number  of 
pieces,  date  and  weight  of  the  products  contained  therein  are  branded 
according  to  these  rules,  on  the  head  of  every  package. 

REG.  8.  Should  the  Inspector  be  called  upon  to  inspect  Pickled 
meats,  and  upon  examination,  he  should  be  of  the  opinion  that  the  num- 
ber of  pounds  required  by  these  rules  had  not  been  originally  packed,  he 
«ha!l  not  pass  them  as  Standard,  but  shall  refer  the  matter  at  once  to  the 
Committee  on  Provision  Inspection,  who  shall  investigate,  and  if  .a  satis- 
factory explanation  can  be  given  or  arrived  at,  they  shall  instruct  the  In- 
spector to  proceed  and  inspect  and  pass  them;  but  if  not  satisfactory  to 
the  Committee,  they  shall,  in  their  judgment,  make  the  fact  known  to  the 
Association  in  any  way  they  may  think  most  proper. 

REG.  9.  Contents  of  each  package  of  Pickled  Meats  must  show  a 
reasonable  uniformity  in  weight,  according  to  its  class. 

REG.  10.  It  shall  be  the  further  duty  of  the  Inspectors,  during  the 
packing  season,  to  visit  frequently  the  different  packing  hovises  to  see 
that  Provisions  are  properly  dated  and  branded  at  time  of  being  packed. 
REG.  11.  Dry  Salted  Rough  Sides  may  be  made  into  Short  Rib  or 
Short  Clear  Sides,  and  Dry  Salted  Short  Rib  Sides  may  be  made  into 
Short  Clear  Sides,  if,  in  all  other  respects,  they  are  up  to  the  require- 
ments, and  shall  be  classed  as  Standard. 

REG.  12.  All  the  foregoing  Regulations  must  be  justly  and  liberally 
construed,  and  no  property  shall  be  rejected  or  condemned  on  mere 
technicalities. 


REQUIREMENTS  AS  TO  CUT  AND  PACKING  OF  HOG  PRODUCTS. 


BARRELED  PORK. 

MESS    PORK. 

Standard  Mess  Pork  should  be  made  from  sides  of  well-fatted  Hogs, 
split  through  or  on  one  side  of  the  backbone,  and  equal  proportions  on 
both  sides,  cut  into  strips  of  reasonably  uniform  width,  properly  flanked 
and  not  backstrapped. 

One  hundred  and  ninety  (190)  pounds  of  Green  Meat,  and  between 
March  1  and  November  1  two  hundred  (200)  pounds, numbering  not  over 
sixteen  (16)  pieces,  including  the  regular  proportion  of  flank  and  shoul- 
der cuts,  placed  four  layers  on  edge,  without  excessive  crowding  or 
bruising,  shall  be  packed  in  each  barrel,  with  not  less  than  thirty  (30) 
pounds  of  coarse  salt,  and  barrel  filled  with  brine  of  full  strength,  or 
thirty  (30)  pounds  of  coarse  salt,  and  in  addition  thereto,  fifteen  (15) 
pounds  of  salt,  and  barrel  filled  with  cold  water. 

PRIME    MESS   PORK. 

Prime  Mess  Pork  should  be  made  from  the  Shoulders  and  Sides  of 
Hogs  weighing  from  one  hundred  (100)  to  one  hundred. and  seventy-five 
(175)  pounds,  net,  to  be  cut  as  near  as  practicable  into  square  pieces  of 
four  (4)  pounds  each;  the  shank  of  the  Shoulder  to  be  cut  off  close  to 
the  breast. 

One  hundred  and  ninety  (190)  pounds  of  Green  Meat  in  the  propor- 
tion of  twenty  (20)  pieces  of  Shoulder  cuts  to  thirty  (30)  pieces  of  Side 
cuts,  shall  be  properly  packed  in  each  barrel,  with  not  less  than  twenty 
(20)  pounds  of  coarse  salt,  and  barrel  filled  with  brine  of  full  strength; 
or,  twenty  (20)  pounds  of  coarse  salt,  and  in  addition  thereto,  fifteen  (15) 
pounds  of  salt,  and  barrel  filled  with  water.  There  shall  also  be  put  into 
each  barrel  twelve  (12)  ounces  of  saltpetre. 


BOARD  OF  TRADE. 


EXTRA     PKIME    PORK. 


Extra  Prime  Pork  should  be  made  from  heavy  untrimmed  Shoulders* 
cut  into  three  (3)  pieces;  the  leg  to  be  cut  off  close  to  the  breast,  and  in 
all  other  respects  to  be  cut,  selected  and  packed  as  Mess  Pork. 


LIGHT    MESS   PORK. 


Light  Mess  Pork  should  be  made  from  Sides  of  reasonably  well- 
fatted  Hogs;  and  in  all  other  respects  to  be  cut,  selected  and  packed 
same  as  Mess  Pork,  except  that  as  many  as  twenty-two  (22)  pieces  may 
be  put  into  each  barrel. 


BACK    PORK. 


Back  Pork  should  be  made  from  backs  of  Hogs  after  bellies  have 
been  taken  off,  cut  into  pieces  of  about  six  (6)  pounds  each,  and  in  all 
other  respects  to  be  cut,  selected  and  packed  in  the  same  manner  as  Mess- 
Pork. 


EXTRA    SHOULDER   PORK. 


Extra  Shoulder  Pork  should  be  made  from  heavy  trimmed  Shoulders, 
cut  into  three  (3)  pieces;  the  leg  to  be  cut  off  close  to  the  breast,  and  in 
all  other  respects  to  be  cut,  selected  and  packed  in  the  same  manner  as 
Mess  Pork. 


EXTRA    CLEAR    PORK. 

Extra  Clear  Pork  should  be  made  from  the  Sides  of  extra  heavy, 
well-fatted  Hogs,  the  backbone  and  ribs  to  be  taken  out,  the  number  of 
pieces  in  each  barrel  not  to  exceed  fourteen  (14),  and  in  all  other  respects 
to  be  cut,  selected  and  packed  in  the  samer  manner  as  Mess  Pork. 

CLEAR   PORK. 

Clear  Pork  should  be  made  from  the  Sides  of  extra  heavy,  well- 
fatted  Hogs,  the  backbone  and  half  the  rib  next  the  backbone  to  be  taken 
out,  the  number  of  pieces  in  each  barrel  not  to  exceed  fourteen  (14),  and 
in  all  other  respects  to  be  cut,  selected  and  packed  in  the  same  manner  as 
Mess  Pork. 

CLEAR   BACK   PORK. 

Clear  Back  Pork  should  be  made  from  the  backs  of  heavy,  well-  fatted 


:80  LAWS  OF  TRADE. 

Hogs,  after  bellies  have  been  taken  off  and  backbone  and  ribs  taken  out, 
•cut  into  pieces  of  about  six  (6)  pounds  each,  and  in  all  other  respects  to 
be  packed  in  the  same  manner  as  Mess  Pork. 

RUMPS. 

Rumps  should  be  trimmed  with  only  enough  taken  off  to  make  them 
neat  and  smooth;  the  tails  to  be  cut  off  close,  and  in  all  other  respects 
to  be  cut,  selected  and  packed  in  the  same  manner  as  Mess  Pork. 

PICKLED  MEATS. 

STANDARD    SWEET    PICKLED    HAMS. 

Standard  Sweet  Pickled  Hams  should  be  cut  short  and  well  rounded 
at  the  butt,  properly  faced,  shank  cut  in  or  above  the  hock  joint;  to  be  rea- 
sonably uniform  in  size,  and  average,  in  lots,  not  to  exceed  sixteen  (16) 
pounds.  Three  hundred  (300)  pounds,  block  weight,  shall  be  packed  in 
each  tierce,  with  either  twenty-four  (24)  pounds  of  salt,  three  (3)  quarts 
of  good  syrup,  twelve  (12)  ounces  of  saltpetre,  and  tierces  filled  with 
water;  or  tierce  filled  with  sweet  pickle,  made  according  to  above 
standard 

STANDARD    SWEET    PICKLED  SHOULDERS. 

Standard  Sweet  Pickled  Shoulders  should  be  well  cut  and  trimmed, 
reasonably  uniform  in  size,  and  average,  in  lots,  not  to  exceed  sixteen 
(16)  pounds.  Three  hundred  (300)  pounds,  block  weight,  shall  be  packed 
in  each  tierce.  Pickle  the  same  as  used  for  Hams. 

NEW   YORK    SHOULDERS. 

New  York  Shoulders  should  be  made  from  small,  smooth  Hogs, 
shank  cut  off  one  inch  above  knee  joint,  trimmed  close  and  smooth,  reas- 
onably uniform  in  size,  and  to  average,  in  lots,  not  to  exceed  fourteen  (14) 
pounds..  Three  hundred  (300)  pounds,  block  weight,  shall  be  packed  in 
each  tierce.  Pickle  the  same  as  used  for  Hams. 

SWEET     PICKLED    BELLIES. 

Sweet  Pickled  Bellies  should  be  made  from  nice  smooth  Hogs,  well 

5 


BOARD  OF  TRADE.  81" 

cut  and  trimmed,  to  average,  in  lots,  not  to  exceed  fourteen  (14)  pounds 
Three  hundred  (300)  pounds,  block  weight,  shall  be  packed  in  each 
tierce.     Pickle  the  same  as  used  for  Hams. 

BRANDING. 

The  packers'  name,  location,  number  of  pieces,  and  date  of  packing, 
shall  be  branded  on  the  head  of  each  package  of  Pickled  Meats  at  the 
time  of  packing. 

UNIFORMITY    OF    TICKLED    MEATS. 

All  Pickled  Meats  should  be  sized  when  packed — the  light,  medium 
and  heavy  separately,  as  nearly  as  practicable. 

CUT  MEATS. 

HAMS. 

Hams  should  be  cut  short,  well  rounded  at  the  butt,  properly  faced> 
cut  in  or  above  the  hock  joint. 

SHOULDERS. 

Shoulders  should  be  cut  as  close  as  possible  to  the  back  part  of  the 
forearm  joint,  butted  off  square  on  top;  neckbone  and  short  ribs  taken 
out,  blood  vein  lifted  and  cut  out,  breast  flap  to  be  trimmed  off,  and  foot 
to  be  cut  off  in  or  above  the  knee  joint. 

BLADED    SHOULDERS. 

Bladed  Shoulders  should  be  cut  the  same  as  Standard  Shoulders,  ex- 
cepting the  shoulder-blade  to  be  taken  out  and  the  corners  rounded. 

ROUGH    SIDES. 

Rough  Sides  should  be  made  by  splitting  the  Hog  through  or  on  OD& 
side  of  the  backbone,  and  an  equal  proportion  of  both  Sides  must  be  de- 
livered on  sales  to  make  them  Standard. 

SHORT    CLEAR    SIDES. 

To  make  Short  Clear  Sides,  the  backbone  and  ribs  should  be  taken, 
out,  henchbone  and  breastbone  sawed  or  cut  down  smooth,  and  even  with 
the  face  of  the  Side;  feather  of  bladebone  not  to  be  taken  out,  and  Sides, 
not  to  be  backstrapped  or  flanked. 

SHORT  RIB  SIDES. 

To  make  Short  Rib  Sides,  the  backbone  should  be  taken  out,  h<>nch- 


82  LAWS  OF  TRADE. 

bone  and  breastbone  sawed  or  cut  down  smooth,  and  even  with  the  face 
of  the  Side;  feather  of  bladebone  not  to  be  taken  out,  and  Sides  not  to 
be  backstrapped  or  flanked. 

LONG    CLEAR    SIDES. 

» 

To  make  Long  Clear  Sides,  the  backbone,  shoulder  bones  and  ribs 
must  be  taken  out,  leg  cut  off  close  to  the  brisket,  hejichbone  and  breast- 
bone sawed  or  cut  down  smooth  and  even  with  the  face  of  the  Side,  and 
Sides  not  to  be  backstrapped  or  flanked. 

CUMBERLAND  SIDES. 

To  make  Cumberland  Sides,  the  Side  and  Shoulder  should  be  left 
together  in  one  piece,  leg  cut  off  below  the  knee  joint;  shoulder  ribs, 
neckbone  and  backbone  taken  out;  blood  vein  lifted  and  cut  out;  hench- 
bone  and  breastbone  sawed  or  cut  down  smooth  and  even  with  the  face 
of  the  Side,  and  Sides  not  to  be  backstrapped  or  flanked. 

LONG    RIB    SIDES. 

Long  Rib  Sides  should  be  made  same  as  Cumberlands,  except  that 
the  shoulder  bones  must  be  taken  out,  and  leg  cut  off  close  to  the  brisket. 

STRBTFORD      SIDES. 

Stretford  Sides  should  be  made  from  Hogs  weighing  about  140  to 
160  pounds  net;  backbone  and  half  of  the  ribs  taken  out,  bladebone 
taken  out,  knuckle  left  in,  and  foot  cut  off  close  to  the  breast. 

BIRMINGHAM    SIDES. 

Birmingham  Sides  should  be  made  from  Hogs  weighing  about  170 
pounds  net;  backbone,  ribs  and  bladebone  taken  out,  pocket  piece  cut 
out  and  pocket  nicely  rounded,  knucklebone  left  in,  and  leg  cut  off  close 
to  the  breast. 

SOUTH     STAFFORDSHIRE     SIDES. 

South  Staffordshire  Sides  should  be  made  the  same  as  Birmingham, 
except  loin  taken  out  full  to  top  of  shoulder  blade,  leaving  only  a  thin 
strip  of  le<xii  along  the  back;  knuckle  left  in,  and  leg  cut  off  close  to  the 
breast. 

YORKSHIRE     SIDES. 

Yorkshire  Sides  should  be  made  the  same  as  Cumberlands,  with  ribs 
ont  and  leg  cut  off  about  two  inches  above  the  knee. 


BOARD  OF  TRADE.  83 


IRISH  CUT  SIDES. 

Irish  Cut  Sides  should  be  made  the  same  as  Long  Clear,  except  top 
of  the  pocket  cut  off,  knuckle-bone  left  in. 

LONG    HAMS. 

Long  Hams  should  be  cut  from  the  Side  by  separating  with  a  knife 
the  hipbone  from  the  rump,  properly  rounded  out,  foot  unjointed  at  first 
joint  below  the  hock  joint. 

SOUTH    STAFFORDSHIRE    HAMS. 

South  Staffordshire  Hams  should  be  cut  short,  hipbone  taken  out  at 
socket  joint,  hock  unjointed  at  first  joint  below  the  hock  joint. 

UNIFORMITY    OF    BOXED    MEATS. 

In  packing  Meats  in  boxes,  the  pieces  should  be  classified — the  light, 
medium  and  heavy  separately,  as  nearly  as  practicable,  in  packages  made 
to  suit  the  different  sizes. 

LARD. 

CHOICE      LARD. 

Choice  Lard  to  be  made  from  leaf  and  trimmings  only,  either  steam 
or  kettle  rendered,  the  manner  of  rendering  to  be  branded  on  each  tierce. 

PRIME  STEAM  LARD. 

Prime  Steam  Lard  shall  be  Standard  made  from  the  head,  gut,  leaf 
and  trimmings,  in  the  proportion  in  which  the  same  came  from  the  hog. 

PACKAGES, 

COOPERAGE. 

Cooperage  shall  be  made  of  well-seasoned  White  or  Burr  Oak,  free 
from  objectionable  sap. 

BARRELS. 

For  barrels,  staves  should  be  five  eights  (f)  of  an  inch  thick,  twenty- 
nine  (29)  or  thirty  (30)  inches  long;  heads  eighteen  (18)  inches,  one  (1) 


84  LAWS    OF   TRADE. 

inch  thick  in  center,  and  three-eighths  (f)  at  bevel;  hoops  hickory,  or  white 
oak,  to  be  hooped  not  less  that  eleven-sixteenths  (11-16). 


TIERCES. 


Tierces  for  Hams,  Shoulders,  Beef  or  Lard,  should  be  thirty-two 
(32)  inches  long  with  a  twenty-one  (21)  inch  head,  or  thirty-three  (33) 
inches  long  with  a  twenty  and  one-half  (20^)  inch  head  ;  staves  to  be 
chamfered  at  the  head.  Quality  of  staves  and  hoops  to  be  the  same  as 
for  barrels;  staves  (f)  of  an  inch  thick;  heads  same  thickness  as  for  bar- 
rels; hooped  eleven-sixteenth  (11-16).  Iron-bound  tierces  for  Lard, 
Hams  or  Shoulders,  shall  be  classed  as  Standard  if  made  in  compliance 
with  the  requirements  of  this  rule,  as  to  heading  and  staves,  and  hooped 
with  not  less  than  four  good  hoops  on  each  end. 


BOXES. 


Boxes  should  be  made  of  sound  common  boards,  reasonably  dry,  one 
inch  thick,  dressed  on  one  side,  not  over  three  strips  to  each  end,  side 
bottom  or  top;  to  have  good,  strong,  hardwood,  white  wood  or  sap  pine 
stays  inside  each  corner;  should  be  well  nailed  and  strapped  with  birch, 
oak  or  hickory  straps  around  each  end,  to  lap  three  inches  on  the  cover. 
Boxes  should  be  nailed  together  with  tenpenny  nails,  and  the  stays  nailed 
in  with  eightpenny  nails. 


THE  UNION  STOCK  YARDS  AND  TRANSIT  COMPANY 


The  supremacy  that  Chicago  has  attained  as  a  business  mart  cannot 
be  better  illustrated  than  by  a  brief  descriptive  review  of  the  Union 
Stock  Yards  and  Transit  Company.  The  advantages  offered  by  this 
mammoth  enterprise  to  Western  dealers  and  feeders  of  live  stock  are  un- 
equaled  in  any  market,  either  in  the  old  or  new  world.  The  enterprise 
is  owned  by  a  chartered  company  with  a  paid-up  capital.  The  amount 
of  which  we  were  unable  to  ascertain  as  the  officers  of  the  company  de- 
clined to  make  it  public,  but  there  is  no  doubt  that  it  runs  into  the  mil- 
lions. 

This  great  bovine  and  porcine  city  consists  of  345  acres — extending 
from  Halsted  street  on  the  East  to  the  Packing  Houses  on  the  West, 
running  North  to  47th  street,  thpnce  South  to  the  open  prairies — and  in 
its  enterprising  march,  will  have  before  a  very  long  time  hence,  within 
its  boundaries,  all  there  ever  was  of  the  famous  horsemen's  sporting 
grounds,  known  as  "Dexter  Park."  The  yards  are  now  said  to  be  one 
mile  in  length  by  one-half  mile  in  width,  but  are  being  extended  in  the 
direction  mentioned. 

They  were  opened  for  the  reception  of  live  stock  on  December  25th, 
1865.  As  you  enter  from  Halsted  street,  immediateljr  on  your  left  is  the 
"Transit  House,"  built  at  an  expense  of  $250,000,  which  is  furnished  with 
exceeding  neatness,  and  an  air  of  comfort  seems  to  pervade  the  entire 
premises.  As  you  proceed  along  a  wide  avenue  on  a  raised  sidewalk 
until  you  have  reached  very  nearly  the  center  of  the  grounds,  you  come 
directly  upon  an  unpretending  looking  one  story  brick  building  which  is 
known  as  the  Union  Stock  Yards  National  Bank,  financially  a  formidable 
institution,  and  admirably  managed  by  those  having  its  interests  in 
charge.  When  you  have  passed  it,  a  plain  looking  two  and  one-half 
story  brick  building  60x380  feet  is  before  you,  this  is  called  the  "Ex- 


86  LAWS  OF  TRADE. 

change,"  and  as  you  enter  this  building  you  are  introduced  to  a  very 
large  Exchange  Hall  on  one  side  of  which  are  located  the  Superinten- 
dent's, Secretary  and  Treasurer's  offices  with  the  telegraph  office.  On 
the  other  side  there  is  quite  a  stretch  of  an  avenue,  on  either  side  of 
which  are  located,  both  on  this  and  the  second  floor,  about  80  offices 
which  are  occupied  by  the  live  stock  commission  merchants.  These  are 
all  surrounded  with  a  saloon,  restaurant,  packers  offices,  offices  for  East- 
ern shippers,  barber  shop  and  fruit  stand  Upon  ascending  to  the  second 
floor  of  this  building,  standing  at  almost  any  point  there  is  presented  to 
the  eye  an  animated  scene — with  countless  herds  of  cattle  and  swine  and 
sheep  enclosed  in  the  pens — the  whole  grounds  teeming  with  the  bustle 
and  activity  incident  to  buying,  selling  and  transporting  of  stock.  With 
men  hurrying  hither  and  thither  on  horseback  in  the  dispatch  of  varied 
business  matters  and  crowds  of  pedestrians  apparently  brimful  of  the 
same  purposes;  then  looking  off  to  the  West  the  city  of  packing  houses, 
some  thirty  in  number,  tower  up  in  the  distance  and  are  easily  discern- 
ible; these  together  with  the  shrill  whistle  of  the  various  incoming  and 
outgoing  trains  of  cars  loaded  with  live  stock,  make  a  grand  and  rare 
sight  indeed.  There  are  some  40  miles  of  tracks  connecting  the  yards 
with  all  the  railroads  centering  in  Chicago.  The  arrangement  for  either 
loading  and  unloading  are  as  nearly  perfect  as  is  possible  to  conceive. 
As  is  also  the  arrangement  for  the  transfer  of  any -number  ot  cattle  from 
the  cars  of  one  railway  to  another.  The  pens  for  live  stock  vary  in  size 
but  are  nearly  all  laid  off  square  in  shape,  and  are  so  constructed  that 
several  can  be  thrown  into  one  by  merely  opening  gates,  very  similar  to 
the  opening  of  doorways  to  the  rooms  of  a  house.  Gates  are  also  so  ar- 
ranged as  to  open  across  the  roadway,  enabling  the  turning  of  a  drove 
directly  into  a  pen,  and  then  closing  after  them.  The  cattle  pens  are 
open,  but  those  designed  for  hogs  and  sheep  are  covered.  They  are  all 
well  fitted  with  troughs  and  hydrants,  the  latter  connecting  with  the 
water  tanks  which  are  kept  supplied  with  pure  water  received  from  the 
artesian  wells  that  have  been  bored  on  the  grounds.  There  are  three 
artesian  wells  situated  in  about  the  centre  of  the  enclosure,  one  of  which 
is  eleven  hundred  feet,  and  the  other  two,  each  twelve  hundred  feet 
deep.  There  are  over  fifteen  miles  of  macadamized  streets  tunning 
through,  and  intersecting  with  each  other  in  different  parts  of  the  Yards. 
And  forty  miles  of  water  and  drainage  pipes,  forming  a  perfect  net- work 
running  underneath,  thoroughly  accomplishing  the  desired  result  aimed 
at 


UNION  STOCK  YARDS.  8r/ 

The  matter  of  weighing  droves  of  cattle,  sheep  and  hogs  is  an  im- 
portant one.  The  scales  that  are  used  throughout  the  Yards  are  the 
celebrated  "Fairbanks."  There  are  thirteen  fifty-ton  stock  scales  in  con- 
stant use,  besides  numerous  smaller  ones  needed  for  weighing  hay,  corn, 
etc.  The  company  have  been  wise  in  making  so  judicious  a  selection  in 
a  matter  so  important  to  both  the  buyer  and  seller.  The  Fairbank's 
scales  have  been  used  from  one  end  of  the  country  to  the  other,  and  they 
have  always  at  all  places  maintained  their  high  character  for  perfect  ac- 
curacy, and  we  believe  are  entitled  to  the  supremacy  they  have  attained 
as  being  superior  to  all  others  manufactured.  They  are  regularly  ad- 
justed and  every  care  is  taken  to  provide  for  their  perfect  equilibrium. 
The  weigh-masters  are  appointed  by  the  officials  of  the  Yards,  and  are 
not  permitted  to  receive  any  fee  or  reward  in  any  wise.  The  rules  with 
which  they  must  act  in  accordance,  are  rigid  and  exacting,  to  enforce  a 
just  performance  of  duty,  and  any  well  grounded  complaint  for  non-per- 
formance of  duty,  as  strictly  laid  down  by  the  rules  is  an  equiva- 
lent to  a  dismissal  from  further  service.  In.  convenient  parts  of  the 
Yards  are  located  a  printing  office  from  which  is  issued  the  "Drover's 
Journal"  an  ably  conducted  quarto  newspaper,  devoted  exclusively  to 
the  interests  of  the  live  stock  dealer  and  said  to  be  the  only  newspaper 
of  the  kind  published  in  the  world;  machine  shops,  the  postoffice,  depot, 
buildings,  and  many  other  buildings  used  in  the  transaction  of  business 
pertaining  to  the  receiving  and  shipping  of  live  stock.  From  a  critical 
examination  it  can  be  truthfully  said,  that  on  every  hand,  go  whither  you 
may  over  these  vast  grounds,  there  are  evidences  confronting  you  of 
great  ability  and  wise  forethought  pervading  the  entire  inclosure.  It  is 
apparent  that  the  great  enterprise  is  in  the  hands  of  men.  of  master 
minds.  Everything  that  is  necessary  which  ingenious  thought  could 
suggest  is  provided;  nothing  seems  to  be  forgotten,  and  from  the  im- 
provements, that  are  being  constantly  made,  any  and  every  emergency 
that  could  possibly  occur  are  being  guarded  against.  This  vast  business 
enterprise  has  kept  pace  with  the  wonderful  growth,  arising  from  the 
constant  settlements,  occurring  from  year  to  year  on  the  rich  and  bounte- 
ous lands  of  the  Northwestern  States  by  emigrants  and  others  seeking 
permanent  homes  through  tilling  the  soil  and  in  raising  of  live  stock. 
But  it  matters  not  where  the  locality  may  be,  live  stock  is  shipped  from 
all  points  to  these  Yards,  even  as  far  distant  as  the  feeding  lands  of 
Texas  are,  the  shipments  from  thence  are  very  large.  Through  its  man- 
agement, since  its  inception  in  the  year  1865,  to  this  date,  the  enterprise 


'88  LAWS  OF  TRADE. 

has  proven  a  success.  The  business  has  been  large  and  remunerative,  but 
that  the  expenses  which  must  necessarily  accrue  from  the  constant  wear  and 
tear  of  the  yards,  together  with  the  general  management  of  an  organiza- 
tion of  such  immense  magnitude  cannot  be  otherwise  than  enormous  in 
amount.  To  give  some  evidence  of  the  outlay  of  money  that  is  neces- 
sary from  time  to  time  to  keep  the  grounds  in  good  condition,  we  have 
^only  to  refer  to  the  proceedings  which  took  place  at  the  annual  meeting 
of  the  Directors  and  Stockholders  in  the  year  1875,  when  an  appropria- 
tion was  made  for  repairs  and  improvements,  and  the  enlargement  of  the 
Yards,  so  as  to  meet  the  requirements  of  the  constantly  increasing  live 
stock  trade,  for  the  large  amount  of  about  $300,000. 

These  improvements,  necessary  for  the  reconstruction  and  the  re- 
pairing of  the  Yards  were  begun  and  completed  under  the  supervision  of 
John  B.  Sherman,  E,sq.,  the  able  and  indefatigable  Superintendent,  as- 
sisted by  George  T.  Williams,  Esq.,  the  courteous  and  efficient  Secretary 
of  the  company.  Both  of  these  gentlemen  have  been  connected  with  this 
grand  enterprise  for  many  years  past,  and  during  all  these  years,  the  active 
agents  ;  and  in  a  great  measure,  it  is  through  their  instrumentality,  the 
Yards  have  been  brought  to  their  present  prosperous  condition.  There 
are  now  one  hundred  and  seventy-five  acres  of  land  under  plank,  and 
constructed  as  follows:  One  hundred  acres  of  cattle  yards,  seventy-five 
acres  of  covered  hog  and  sheejl^pens. 

Twelve  hundred  cattle  pens,  sufficient  to  yard  twenty  thousand  head 
-of  cattle,  thirteen  hundred  hog  pens,  which  provide  for  one  hundred  and 
fifty  thousand  hogs;  three  hundred  sheep  pens  that  will  accommodate 
fifteen  thousand  sheep,  and  also  stabling  for  fifteen  hundred  horses. 

To  gifte  some  conception  of  the  magnitude  of  this  business  enter- 
terprise,  we  are  enabled  to  state  that  the  business  transactions  for  the  year 
ending  December  31st,  1877,  amounted  to  ninety-nine  million,  twenty  four 
thousand  one  hundred  dollars,  and  from  the  year  1872,  to  1877,  inclusive, 
•six  hundred  and  twenty-one  million,  six  hundred  and  fourteen  thousand 
-and  three  dollars.  These  figures  are  colossal  in  amount,  but  they  are 
nevertheless  correct,  and  are  living  evidences  of  wonderful  enterprise 
coupled  with  business  sagacity. 

In  closing  our  remarks  upon  this  vast  business  interest  of  our  city, 
we  extract  the  following  from  Griffith's  Live  Stock  Annual,"  for  the  year 
•ending  1877:  "The  past  year  has  done  much  to  strengthen  the  convic- 
tions which  have  existed  in  the  minds  of  all  practical  men  as  to  the  suit- 
ableness of  the  situation  which  was  chosen  for  the  Great  Central  Live 


UNION  STOCK  YARDS.  89 

Stock  Market  of  the  West,  in  its  present  stage  of  development.  What 
the  future  may  discover  we  are  quite  willing  to  leave  to  that  future  to 
determine.  It  may  be  that  some  few  decades  hence,  stock  yards  as  capa- 
cious as  our  own  may  be  needed  in  that  great  growing  territory  of 
Wyoming,  or  in  Nebraska,  or  Colorado,  or  Kansas;  in  either,  or  indeed 
in  all,  of  these  erreat  growing  centres  of  the  live  stock  trade  of  the  West, 
thriving,  organized  and  capacious  system  of  yards  may  be  needed  and 
built  but  for  the  present,  we  are  in  the  best  position  conceivable  to  take 
charge  of  their  stocks;  and  furnish  them  with  prompt  cash  buyers  for 
the  same.  We  are  sufficiently  near  to  enable  all  those  centres  to  transfer 
their  herds  to  this  market  in  a  comparatively  few  hours,  and  in  very 
nearly  as  good  condition  as  when  they  leave  their  home  pastures. 

The  entire  Railroad  interests  of  the  East  and  West  have  made  Chi- 
cago their  objective  point,  where  all  the  lines  meet  as  in  a  focus,  and 
from  which  they  radiate  to  all  the  pasture  lands  of  the  West,  and  all  the 
seaports,  cities,  towns,  and  villages  of  the  East.  May  we  not,  therefor, 
without  venturing  within  the  line  of  the  prophetic  fairly  state  that  such 
a  center  must,  in  the  very  nature  of  things  continue  for  a  lengthened 
period  to  occupy  the  high  position  we  already  have  gained  as  the  great 
and  important  live  stock  market  of  America." 

The  writer  whom  we  have  just  quoted  is  quite  warm  in  his  expres- 
sions, but  his  enthusiasm  has  not  betrayed  him  into  making  assertions 
that  are  other  than  really  the  facts.  Here  is  located  without  any  ques- 
tion of  doubt  the  greatest  live  stock  market  in  the  world,  and  with  the 
abundant  facilities  for  reaching  it,  the  unexampled  inducements  offered, 
must  make  the  Union  Stock  Yard  and  Transit  Company  the  objective 
point  for  a  long  time  hence  to  the  dealer  and  raiser  of  live  stock  of  the 
West.  The  great  and  growing  young  States  of  Wyoming,  Colorado, 
Kansas,  and  Nebraska  must  abide  their  time;  it  will  come,  but  it  is  in 
the  distant  future  yet.  To  be  sure,  each  of  these  young  States  is  being 
rapidly  peopled  with  an  abundance  of  brain  and  muscle  that  will  eventu- 
ally  carry  them  to  the  front,  and  each  will  be  a  bright  star  in  the  con- 
stellation that  form  our  proud  union  of  States.  But  in  their  youth  and 
as  they  are  becoming  stalwart  and  robust  they  must  look  to  Chicago  for 
assistance  and  support.  And  it  is  an  agreeable  reflection  to  the  people 
of  Chicago  and  those  of  the  Northwest  "to  know  that  so  vast  an  interest, 
a  trust  so  important,  is  in  the  hands  of  a  management  of  such  acknowl- 
edged ability  and  trustworthiness." 


UNION  STOCK  YARDS. 


HOW  BUSINESS  IS    DONE    THERE. 

The  money  value  of  the  live  stock  trade  exceeds  that  of  any  other  one 
product  of  America,  but  of  the  customs  and  laws  peculiar  to  the  business 
but  little  is  known  to  those  not  directly  connected  therewith,  we  there- 
fore give  a  somewhat  detailed  account  of  the  mode  of  doing  the  work 
connected  with  the  movement  of  stock  to  and  in  this  city. 

At  the  beginning  of  all  live  stock  trade  stands  the  farmer,  who  is 
sometimes  the  shipper  of  his  own  and  his  neighbor's  beeves  or  hogs,  but 
as  a  general  rule  this  work  is  done  by  a  class  of  men  who  were  once 
called  drovers  but  who  are  now  shippers  in  name  as  in  fact,  since  driving 
forms  an  important  part  of  their  duties.  Some  of  these  shippers  have 
offices  established  in  towns  on  the  line  of  some  railroad  and  there  spend 
much  of  their  time,  buying  the  stock  brought  in  by  farmers,  and  making 
arrangements  for  the  purchase  and  delivery  of  that  which  is  perhaps 
not  quite  ready  for  sale.  Others  have  no  fixed  office,  but  go  about  the  dis- 
trict selecting  and  buying  the  animals  on  the  farms,  and  agreeing  upon  the 
time  and  place  of  delivery.  Arrived  at  the  shipping  point,  the  shipper, 
who  has  experience,  assorts  his  stock,  so  far  as  may  be  convenient,  ship- 
ping the  best  together,  and  the  poorer  by  themselves.  As  a  rule,  regular 
shippers  consign  their  stock  to  some  house  known  to  them,  and  go  about 
getting  together  another  consignment.  Some  send  no  one  with  their 
hogs  to  care  for  them,  and  where  the  distance  to  be  traveled  is  not  great, 
some  send  their  cattle  without  any  one  to  see  that  they  go  through  in 
good  condition.  As  a,  rule,  however,  the  owner  of  the  cattle  or  some  one 
in  his  employ  accompanies  the  consignment,  to  keep  the  cattle  from  lying 
down  on  the  way.  This  is  necessary,  as  in  loading,  the  car  is  filled  to  its 
utmost  capacity,  that  the  animals  may  support  each  other  and  so  ride 
more  easily,  and  be  less  bruised  by  the  motion  of  the  train  than  th<>y 
would  be  were  there  room  for  them  to  sway  about.  But  some  of  the 
means  taken  to  rouse  to  their  feet  such  of  the  poor  brutes  as  sink  from 


UNION  STOCK  YARDS. 


91 


exhaustion  are  scarcely  so  necessary,  and  are  altogether  barbarous,  sharp 
spikes  set  in  poles,  savage  hooks  and  other  instruments  of  torture  having 
been  freely  used  until  the  efforts  of  the  Humane  Society  put  an  end  to 
the  practice,  or  at- least  to  the  bringing  of  these  instruments  to  the  Stock 
Yards. 

Arrived  at  the  Yards,  the  stock  is  driven  out  upon  a  platform,  which 
is  even  in  height  with  the  floors  of  the  cars,  and  which  extends  with  but 
few  breaks  around  three  sides  of  the  Yards.  From  this  platform  an  in- 
clined plane  leads  to  the  paved  ground.  Down  this  the  stock  is  driven, 
and  from  this  moment  the  responsibility  of  the  railroad  company  ends, 
and  that  of  the  Stock  Yards  company  begins.  At  this  "  shute"  the  em- 
ployes of  the  Union  Stock  Yards  and  Transit  Company  count,  with  the 
utmost  care,  the  animals  received  from  each  car,  noting  the  numbers  of 
the  car,  the  shute  and  the  animals.  Any  shortage  is  at  once  noted  in 
their  numerous  memorandum  books,  as  is  also  the  condition  of  the  stock. 
The  first  count  is  considered  as  final  in  tracing  losses.  Beyond  that  one 
must  goto  the  railroad  company.  The  name  of  the  consignor  and  that  of 
the  consignee,  taken  from  the  way-bills  brought  by  the  conductor  of  the 
train,  are  also  entered  in  this — one  of  the  most  important — as  it  is  the 
first  entry  made  by  the  Stock  Yards  Company.  The  record  appears  thus 

5  ST.  Louis,  Oct.  30. 


CONSIGNOR. 

CONSIGNEE. 

B. 

P. 

C. 

H. 

S. 

Remarks. 

John  Brown. 

3131 
22 

Gregory,  Cooley 
&Co. 
3109            2559 
23                21 

10 

13 

175 

4  Cripp. 
7  Dead. 

To  the  initiated  this  reads:  "Cars  numbered  3131,  3109  and  2559  of 
the  fifth  train  received  in  the  St.  Louis  division  on  the  thirtieth  day  of 
October,  brought  175  hogs  consigned  by  John  Brown  to  Gregory, 
Cooley  &  Co.  There  were  four  crippled  and  seven  dead  hogs  in  these  cars. 
The  hogs  from  car  number  3131  were  unloaded  into  shute  number  22, 
those  from  car  3109  into  shute  23,  and  those  in  car  2559  into  shute  21, 
and  all  were  afterward  put  into  pen  number  13,  in  block  10.  For  any 
other  kind  of  stock  the  entries  would  be  essentially  the  same  in  form. 

For  greater  convenience  the  yards  are  laid  out  into  divisions  popu- 
larly known  as  the  Rock  Island,  the  Burlington,  the  St.  Louis,  the  North- 
western and  the  St.  Paul,  but  officially  they  are  described  by  the  first 


LAWS  OF  TRADE. 


UNION    STOCK    YARDS    NATIONAL    BANK.       (SEE    PAGE    106.) 


TEXAS    CATTLE. 


UNION  STOCK  YARDS.  93 

five  letters  of  the  alphabet.  Above  the  corners  of  each  block  are  signs 
upon  which  are  plainly  painted  the  letter  of  the  division  and  the  number 
of  the  block,  while  each  pen  has  its  number  upon  its  gate.  The  pens  for 
sheep  and  for  hogs  are  roofed,  and  the  whole  yards  are  divided  by  streets 
and  alleys,  some  of  them  paved  and  many  of  them  planked,  as  are  also 
most  of  the  pens. 

After  the  stock  is  driven  to  a  pen  and  there  locked  in,  the  consignee 
gives  on  a  printed  card,  furnished  by  the  company,  an  order  for  the 
quantity  of  hay  or  of  com  wanted  for  the  stock,  and  it  is  allowed  time  to 
"  get  a  good  fill  on."  For  the  corn,  one  dollar  per  bushel  is  charged ;  for  the 
hay,  thirty  dollars  per  ton,  and  for  an  abundant  supply  of  pure  water  from 
the  artesian  wells,  brought  by  pipes  to  troughs  in  each  pen,  nothing  is 
charged.  The  custom  is  to  give  the  stock  time  to  eat  all  it  will  of  the 
dry  food,  and  then  allow  the  water  to  flow  into  the  troughs.  As  the 
stock  has,  as  a  usual  thing,  been  for  a  long  time  deprived  of  food  and 
water,  it  is  not  difficult  to  believe  that  the  animals  will  fill  themselves  to 
the  utmost.  By  this  means  a  number  of  pounds  of  corn,  costing  the 
owner  of  the  stock  something  less  than  two  cents  per  pound,  and  water 
costing  nothing,  is  sold  for  the  current  price  for  hogs,  and  hay  costing  a 
cent,  and  a  half  per  pound  is  sold  for,  it  maj  be,  the  price  of  the  best 
beeves.  It  is  by  considering  this  fact  the  stock  owner  is  able  to  reconcile 
himself  to  the  payment  of  prices  which  have  led  to  much  angry  discus- 
sion, and  to  various  legislative  investigations,  with,  thus  tar,  no  change 
for  the  relief  of  the  oppressed.  It  has  been  repeatedly  shown  that  in 
the  principal  Western  stock  yards  the  charge  made  for  the  use  of  the 
many  conveniences  furnished  are  uniform.  In  the  Kansas  City,  the  St. 
Louis  and  Chicago  Stock  Yards,  twenty-five  cents  each  pays  for  yarding 
cattle,  and  eight  cents  each  pays  all  yard  charges  on  sheep  and  hogs. 
There  is  for  feeding  and  watering  no  charge  other  than  that  included  in 
the  price  for  the  corn  or  the  hay.  In  some  of  the  Eastern  markets  fifty 
cents  per  head  is  charged  for  yardage  on  cattle,  and  fifty  dollars  per  ton 
for  hay. 

After  the  arrivals  have  filled  themselves  to  the  utmost  they  are  ready 
for  sale,  unless  the  salesman  decides  to  sort  them  before  offering  them  to 
the  buyers,  many  of  whom  purchase  for  some  particular  market  or 
especial  purpose,  for  which  a  certain  description  only  of  stock  is  suitable. 
The  necessity  for  assorting  is  growing,  especially  in  Chicago,  where  the 
greater  part  of  the  stook  received  is  thus  'sorted.  This  assorting  is  an 
important  matter  in  the  hog  trade,  as  through  it  a  skillful  sorter  can  make 


94  LAWS  OF  TRADE. 

a  great  difference  in  favor  of  the  buyer — if  the  salesman  can  be  made  to 
consent.  Soon  after  the  sale  is  made  the  stock  is  weighed,  the  date  of 
the  transaction,  the  number  of  the  division  and  of  the  scale,  the  name  cf 
the  buyer,  the  seller  and  the  weighmaster,  together  with  the  number  and 
weight  of  the  animals  being  given  upon  a  card  furnished  for  the  purpose 
by  the  company.  After  the  price  at  which  the  stock^was  sold  has  been 
marked  upon  the  back  of  the  ticket  it  goes  to  the  clerks  in  the  office  of 
the  salesman,  and  by  them  is  taken  to  the  office  of  the  Stock  Yards  Com- 
pany, and  when  the  buyer  is  financially  responsible  and  has  made  suitable 
arrangements  there,  and  a  duplicate  showing,  substantially  the  same 
things,  as  appear  upon  the  ticket,  is  given  under  the  signature  of  the  Sec- 
retary and  the  official  stamp  of  the  company.  This  duplicate  is  then 
taken  by  the  clerk  of  the  salesman  to  the  office  of  the  buyer  to  obtain  his 
signature,  after  which  it  is  deposited,  like  any  check  or  draft,  to  the  ac- 
count of  the  party  making  the  sale.  If  the  buyer  has  not  made  an  ar- 
rangement at  the  bank  here  for  the  payment  of  his  duplicate,  he  pays  in 
the  office  of  the  seller  for  the  stock,  and  receives  an  order  for  its'  delivery 
to  him.  To  buyers  of  known  responsibility  what  is  known  as  an  "  open 
order"  is  given  by  the  commission  man  or  broker,  and  upon  the  strength 
of  this  open  order,  stock  consigned  to  the  firm  giving  it  can  be  taken 
without  a  written  order  from  the  yards,  thus  saving  a  vast  amount  of 
bother. 

As  soon  as  the  duplicate  is  received,  or  the  order  given  for  the  de- 
livery of  the  stock,  an  account  is  rendered  and  the  net  proceeds  start  on 
the  way  to  the  consignor,  except  when  directions  from  him  have  changed 
the  usual  course.  Often  the  money  for  a  consignment  is  in  the  hands  of 
the  owner  before  the  commission  man  receives  pay  for  the  stock.  Many 
shippers  to  this  market  use  all  their  available  means  in  buying  a  lot  of 
stock,  and  to  them  the  prompt  remittance  of  the  proceeds  of  a  sale  is 
most  important.  This  the  sharp  competition  between  the  commission 
houses  here  insures. 

There  are  attending  each  consignment  of  stock  back  charges,  pay- 
ment of  which  is  assumed  by  the  Stock  Yards  Company.  To  these  are 
added  the  bills  for  yardage,  for  hay  or  for  corn.  For  these  the  stock  is 
held,  and  will  not  be  released  until  the  account  is  paid,  except  when  the 
house  selling  the  stock  has  given  bonds  to  the  amount  of  ten  thousand 
dollars  to  secure  the  company  against  losses.  In  each  case  the  charges 
are  allowed  to  accummulate  until  the  end  of  the  week,  and  the  total  is 
collected,  usually  on  Monday. 


UNION  STOCK  iARDS.  95 

Such  is,  briefly  and  very  plainly  stated,  the  usual  courso  cf  business 
at  the  greatest  live  stock  mart  the  world  has  ever  known,  but  behind  this 
are  many  peculiarities  which  would  no  doubt  be  interesting  to  the  busi- 
ness public.  Like  other  lines  of  trade  this  has  its  disagreeable  features 
Losses  are  by  no  means  infrequent,  although  in  theory  the  commission 
business  should  be  safe.  Some  shippers  make  an  arrangement  when  they 
draw  upon  correspondents  here,  for  what  is  supposed  to  be  something 
less  than  the  stock  will  sell  for  on  this  market.  If  the  stock  "  pays  out  " 
the  balance,  if  any,  is  sent  to  the  shipper.  If  it  does  not  "  pay  out"  the 
balance  is  often  left  standing  on  the  books  of  the  salesman  here  until 
another  consignment  is  lucky  enough  to  cancel  the  account.  Practically, 
the  commission  man  who  honors  a  draft  buys  stock  he  has  not  seen,  upon 
the  judgment  of  others,  of  whose  ability  and  integrity  he  may  or  may 
not  be  sure.  The  Texas  cattle  trade  has  been  especially  burdened  with 
this  evil,  for  evil  it  is  unmistakably.  One  cause  of  loss  arises  from  the 
custom  of  receiving  from  buyers  checks  upon  the  city  banks,  although 
the  purpose  is  to  sell  stock  only  for  cash.  In  many  instances  these  checks 
have  come  back  endorsed  "no  funds,"  and  sometimes  under  circum- 
stances which  left  no  room  to  doubt  that  the  intention  of  the  buyer  was 
to  defraud.  Much  has  been  said  about  refusing  to  accept  any  but  certi- 
fied checks  or  the  currency  for  stock,  but  it  is  not  likely  that  this  will  be 
done  until  live  stock  brokers  shall  ha\re  united  for  self-defence. 

In  view  of  the  fact  that  the  live  stock  trade  is  greater  than  any  other 
single  interest  in  America,  it  seems  singular  that  those  who  do  the  busi- 
ness of  selling  for  others  have  not  organized  for  the  purpose  of  remedy- 
ing the  evils  attending  the  present  method  of  doing  the  business.  That 
such  an  organization  could  be  made  to  overcome  the  evil  no  one  seems  to 
doubt,  and  why  the  matter  does  not  command  the  attention  of  the  com- 
mission merchants  is  a  marvel. 


96  LAWS  OF  TRADE. 


To  show  the  amount  of  business  transacted  at  the  yards,  we  take  the 
following  from  the  report  for  the  year  ending  December  31,  1877,  of 
George  T.  Williams,  Esq.,  Secretary.  The  figures  are  large  but  less 
than  those  of  each  of  the  three  years  preceding.  This  deficiency  in  the 
receipts  was  mainly  to  be  attributed  to  the  inclement  weather  which 
prevailed  during  the  closing  months  of  the  year,  and  which  caused  the 
roadways  to  be  almost  impassable: 

Cattle  received  during  the  year '. $  1.033.151 

Hogs  received  during  the  year 4.025.970' 

Sheep  received  during  the  year , 310.240 

Horses  received  during  the  year 7.874 

Value  of  Cattle 44.4-25.500 

Value  of  Hogs 54. 337.600 

Value  of  Sheep 1.473.bOO 

Value  of  Horses «. 787.400 

Total  Valuation $99.024.100- 

STOCK  CAPACITY. — The  yards  will  conveniently  contain  at  one  and 
the  same  time  the  following  number  of  stock: 

Cattle 20.000  Head 

Hogs 150.000  Head 

Sheep 15.000  Head 

Horses 1.500  Head 

Total  Capacity 16C.OOO  Head 


The  Live  Stock  Commission  Merchants,  Union 


Among  the  most  notable  features  in  the  business  machinery  of  the 
Union  Stock  Yards  are  the  Live  Stock  Commission  Merchants.  There 
are  about  70  different  parties  and  firms  at  this  time  engaged  in  this  line 
of  business  enterprise.  That  they  are  an  absolute  and  indispensable 
necessity  for  the  protection  of  the  shipper  of  live  stock  there  cannot  be 
a  doubt.  Some  of  these  firms  have  had  a  long  and  highly  reputable  ex- 
perience in  the  business,  having  started  with  the  opening  of  the  Yards 
for  the  reception  of  live  stock  in  the  year  1865;  and  are  now  conse- 
quently familiar  with  all  the  Various  matters  pertaining  to  this  important 
business  interest.  Having  an  acquaintance  with  the  numerous  large 
purchasers  for  the  Eastern  markets,  as  well  as  those  purchasing  for  ex- 
port— as  also  the  buyers  for  home  consumption.  It  needs  business  firms 
of  this  stamp  to  do  justice  to  the  shipper;  and  the  shipper  of  live  stock 
should  not  entrust  his  business  in  the  hands  of  others  than  this  class. 
Some  of  these  merchants  did  a  most  creditable  thing  years  ago,  when 
they  were  not  as  well  posted  in  the  business  of  the  yards  as  they  are 
now.  Sales  were  then  made  frequently  to  irresponsible  parties  for  con- 
siderable amounts.  But  let  it  be  noted  here  to  the  credit  of  these  mer- 
chants that  they  promptly  rendered  their  accounts  of  sales  accompanied 
with  a  check  for  each  of  the  several  amounts,  thereby  protecting  the 
shipper  and  sustaining  the  losses  themselves.  This  manly  and  honorable 
conduct  on  the  part  of  these  firms,  who  have  in  the  past  proven  their 
trustworthiness  we  are  pleased  to  learn  has  been  appreciated  by  the 
dealers  and  shippers.  As  the  business  of  the  Yards  is  being  concen- 
trated and  fast  passing  into  the  hands  of  those  firms  who  have  been  most 
throroughly  tried  in  years  past  and  who  have  on  all  occasions  promptly 
responded  to  all  just  demands  made  upon  them. 

Though  every  reliance  can  be  placed  on  the  correctness  of  the  weigh- 


98  LAWS  OF  TRADE. 

ing  to  which  we  more  particularly  refer  elsewhere,  it  should  be  remem- 
bered that  this  and  all  matters  come  under  the  vigilant  eye  of  the  com- 
mission merchants  or  their  representatives  from  the  moment  the  live 
stock  is  received  in  the  Yards  until  it  is  sold.  And  everything  is  so 
minutely  and  systematically  arranged  that  the  shipper  has  no  further 
trouble  after  he  has  arrived  at  the  Yards  and  has  passed  his  stock  over 
to  the  hands  of  the  merchant.  The  charges  for  the  sale  of  live  stock  as 
a  rule,  are  fifty  cents  per  head  for  cattle,  and  six  dollars  a  car  load  for 
hogs  and  sheep.  The  returns  for  the  sale  of  stock  are  either  handed 
over,  or  forwarded  to  the  shippers  the  same  day  the  stock  is  sold. 


UNION  STOCK  YARDS.  99 

A.  GREGORY.  H.  H.  COOLEY.  L.  R.  HASTING.  E.  D.  DOTY. 


-)  COMMISSION  DEALERS  IN  (— 


Ijl 


Room  58  Exchange  Building, 

UNION    STOCK    YARDS, 

CHICAGO,  ILL. 


Having  been  engaged  in  the  Live  Stock  Commission  business  for 
the  past  twenty  five  years,  we  have  grown  up  and  been  identified  uith 
the  trade  from  its  infancy,  and  haviny  ample  means,  are  enabled  to 
make  liberal  advances  on  consignments,  and  make  prompt  payment 
forall  sales  made. 

We  also,  have  a  branch  office,  at  Denison,  Texas,  for  the  handling 
of  Texas  Cattle. 


REFERENCES: 

Union  Stock  Yards  National  Bank,        ....        U.  S.  Yards,  CHICAGO 

Corn  Exchange  National  Bank, -  " 

First  National  Bank, " 


THE   PACKING  HOUSES. 


On  the  Western  limits  of  the  Union  Stock  Yards  are  located  the 
Packing  Houses,  about  thirty  in  number.  They  are  huge  in  their  dimen- 
sions, some  of  them  measuring  400  by  400  feet,  and  spread  over  a  vast 
area  of  ground,  in  fact  the  territory  they  occupy  is  sufficiently  extensive 
to  make  a  fair-sized  city. 

While  it  is  generally  known  that  Chicago  is  the  principal  meat  pack- 
ing point  in  the  world,  the  idea  exists  in  a  vague  form,  and  there  are  but 
comparatively  few  people  who  have  a  knowledge  of  the  immensity  of 
this  branch  of  business  enterprise.  Hence  the  importance  of  presenting 
to  our  readers,  facts  and  figures  thereupon. 

With  this  object  in  view  we  have  taken  the  pains  to  obtain  reliable 
information  concerning  this  great  industry,  one  of  the  chief  elements  of 
Chicago's  remarkable  growth  and  prosperity.  To  show  the  yearly  pro- 
gress of  the  packing  business  in  Chicago  we  append  a  table  of  statistics 
giving  the  aggregate  number  of  cattle  and  hogs  packed  in  each  year 
since  1853: 

SEASON.                                                                                                                         CATTLE.  HOGS. 

1853 24,663  44,156 

1854 25,431  52,849 

1855 23  691  73,694 

1850 28,972  80,380 

1857 14,971  74,000 

1858 34,675  99,263 

1859 45,503  179,685 

1830 51.606  151.339 

1861 34,624  271,805 

1862 53,703  505,691 

1863 59,687  970.264 

1864 70,08<>  904,659 

4865 92,459  760,514 

1866 27.172  507.355 

1867 25.995  639,332 

1868 35.348  796,226 

1869 .         26,950  f>!»7.!i.>t 

1870 11,9615  6S8.140 

1871 21.254  919.197 

1872 1H,080  1.825,236 

1873 15,755  1,-J5K,650 

1874 21,712  1,8*6.560 

1875 41,192  ->.  136.710 

1876 63,7*3  -'.320,846 

1877 5)2,574  3.079,749 


UNION  STOCK  YARDS.  101 

The  provision  trade  of  this  city  has  grown  more  rapidly  within  the 
past  ten  or  twelve  years  than  any  other,  and  Chicago  is  now  conceded  by 
all  to  be  the  centre,  and  to  a  large  extent  the  regulator  of  this  vast  busi- 
ness interest.  The  area  of  territory  from  which  live  stock  is  drawn  to 
this  market  is  constantly  extending,  the  newly-settled  States  and  terri- 
tories contributing  largely  to  swell  the  volume  of  our  receipts. 

The  packing  of  hogs  has  quadrupled  within  the  time  specified,  as 
has  also  the  quantity  of  meats  sent  to  this  market  for  sale.  The  business 
gives  employment  to  immense  lines  of  capital  and  to  thousands  of  per- 
sons, from  the  highest  order  of  commercial  talent  to  the  lowest  class  of 
laborers,  and  from  present  indications  promises  to  be  one  of  constant 
growth;  in  the  near  future  far  surpassing  its  present  grand  proportions. 
The  trade  in  provisions,  besides  being  largely  for  consumptive  demand, 
has  also  become  one  of  a  speculative  character,  the  latter  class  of  opera- 
tions being  largely  confined  to  mess  pork  and  lard.  The  magnitude  of 
transactions  in  these  articles,  is  to  conservative  merchants  of  the  old 
style  decidedly  startling,  but  these  are  conducted  with  less  of  friction, 
and  probably  with  more  generally  satisfactory  results,  than  similar  opera- 
tions in  grain.  The  business  of  some  of  these  packing  and  provision 
companies  is  so  stupendous  as  to  be  almost  incredible.  And  yet  we 
are  only  stating  facts.  In  the  busy  season,  their  daily  payments  for  hogs 
and  cattle  amount  to  from  $50,000  to  $150,000.  And  during  four  or  five 
consecutive  months  they  will  have  slaughtered  on  an  average  7,500  to 
8,000  hogs  a  day.  The  wonder  is  where  they  all  find  a  market  for  con- 
sumption, but  it  should  be  remembered,  their  field  is  the  world.  Besides 
a  heavy  and  increasing  export  trade  to  all  the  markets  of  Europe,  the 
shipments  to  the  South,  "West  to  California,  and  East  to  New  York  and 
New  England  are  constant  and  very  large. 

The  business  of  packing  is  now  carried  on  both  during  the  summer 
and  winter.  The  summer  packing  is  comparatively  a  new  feature  of  the 
trade,  but  it  is  now  pursued  with  entire  success.  Experience  having 
satisfied  packers  that  pork  put  down  in  summer  is  quite  as  good  and  pos- 
sesses equal  keeping  properties  to  that  packed  in  winter,  and  that  there 
is  no  more  danger,  if  proper  care  be  exercised  of  the  product  souring  or 
deteriorating  in  quality  in  summer  than  in  winter.  Hence  the  business 
of  summer  packing  is  now  regarded  as  a  fixture,  as  the  summer  packed 
meats  have  grown  in  favor,  both  in  this  country  and  Europe.  So  that 
there  is  not  now,  as  heretofore,  a  long  vacation  observed,  lasting  from 
March  to  October. 


102  LAWS  OF  TRADE. 

The  progress  that  Chicago  is  making  in  this  branch  of  industry  and 
trade,  is  unprecedented.  For  twenty-five  years,  with  slight  variations, 
there  has  been  a  steady  and  increasing  growth.  It  is  well  known  at  this 
time,  that  for  the  season,  as  it  is  termed,  for  1878,  the  packing  of  hogs 
will  approximate  about  four  million  five  hundred  thousand.  This  is  a 
large  increase  over  the  preceding  season  for  1877.  It  is  however  confi- 
dently predicted  by  those  engaged  in  the  business,  that  the  time  is  not 
far  distant  in  the  future,  when  the  packing  of  hogs  in  this  city  will  have 
reached  the  extraordinary  figure  of  ten  million,  during  what  is  regarded 
as  the  packing  season  or  seasons  for  the  year.  But  as  regard  the  volume 
of  business  in  this  particular  business  enterprise,  Chicago  stands  to-day 
without  a  rival.  She  has  so  completely  overshadowed  all  other  points, 
that  they  can  not  be  mentioned  as  competitors. 


UNION  STOCK  YARDS.  103 


TRANSIT    HOUSE 


UNION  STOCK  YARDS. 


The  "  Transit  House  "  located  at  the  Union  Stock  Yards,  built  ex- 
pressly for  the  accommodation  of  Stock  dealers.  Is  a  massive,  and  quite 
pretentious  fivestory  and  attic  brick  structure — with  cupola,  which  is  sur- 
rounded by  a  veranda,  from  which  the  guests  of  the  House  can  have  a 
magnificent  view  of  the  yards,  together  with  a  panoramic  sight  of  the  city 
of  Chicago,  and  the  Lake.  It  is  furnished  neatly  and  comfortably  through- 
out, and  some  of  the  rooms  have  the  convenience  of  hot  and  cold  baths. 
The  table  at  all  times  is  excellent,  and  the  meats  are  of  that  superior 
order,  that  the  most  critical  epicure  can  have  his  sensitive  taste  satisfied 
here. 

The  charges  for  the  accommodation  afforded  are  very  moderate, 
ranging  from  $1.50  to  $2.00  per  day,  and  from  $6  to  $14  per  week. 
Meals  50  cents  each.  There  are  both  steam  and  horse  car  conveniences 
running  to  and  from  the  city,  giving  to  the  guests  every  opportunity  to 
visit  places  of  amusement  during  the  evening.  Telegraphic  reports  of 
stock  to  arrive,  are  received  daily. 


104  LAWS  OF  TRADE. 


THE  UNION  STOCK  YARDS  NATIONAL  BANK. 


The  Union  Stock  Yard's  National  Bank  is  an  unpretending  one- 
story  building,  which  adjoins  the  "  Exchange."  It  is,  however,  an 
important  and  effective  auxilliary  in  facilitating  the  general  business 
of  the  Yards;  and  the  amount  of  business  transacted  here  is  simply 
enormous,  reaching  as  high  as  one  hundred,  and  twenty  million  dollars  an- 
nually. Such  an  institution  was  an  absolute  necessity  and  had  therefore 
to  be  provided.  Since  its  establishment,  the  enterprise  has  proven  a 
grand  success,  and  is  receiving  the  support  of  all  the  prominent  live 
stock  dealers  in  the  West.  The  institution  has  been  admirably  managed 
by  its  former  cashier,  E.  S.  Stickney,  Esq.,  but  who  has  since  the  decease 
of  the  former  President,  Mancell  Talcott,  Esq.,  succeeded  to  the  Presi- 
dency, Mr.  Stickney  has  proven  himself  to  be  an  able  financier,  and  it 
may  be  said  that  it  has  been  mostly  through  his  instrumentality  that  the 
Bank  has  secured  the  favor  and  confidence  of  the  Banking  interests  of 
the  entire  country.  Whilst  Mr.  Stickney  has  with  marked  ability  man- 
aged the  executive  duties  pertaining  to  his  official  position,  it  is  but 
proper  to  say,  he  has  behind  him  a  board  of  directors,  who  are  as  able 
and  discriminating  in  judgment  on  financial  affairs  as  any  other  set  of 
men  in  the  country.  And  it  is  through  such  management  of  its  affairs 
that  the  Bank  has  so  justly  earned  its  high  character  for  being  one  of  the 
soundest  and  best  managed  financial  institutions  in  the  country. 


TRANSIT    HOUSE. 


Lumberman's  Exchange  of  Chicago. 

(Chartered  by  the  State  of  Illinois,  April  2d,  1869.) 


Officers  and  Committees  for  the  year  ending  the  first  Monday  in 

March,  1879- 


OFFICERS. 

THADDEUS  DEAN,  President. 

JOHN  MCLAREN,       -  Vice  President. 

GEO.  E.  STOCKB RIDGE,     -  Secretary. 

A.  G.  VAN  SCHAICK,            -  -         Treasurer. 


DIRECTORS. 

THADDEUS  DEAN.  HORACE  W.  CHASE.  ROBERT  L.  HENRY. 

MALCOLM  MCDONALD.  A.  P.  KELLEY.  S.  K.  MARTIN. 

A.  G.  VAN  SCHAICK.  ALEXANDER  OFFICER.  S.  A.  IRISH. 

B.  F.  FERGUSON.  I.  K.  HAMILTON.  C.  C.  THOMPSON. 

JOHN  MCLAREN. 

COMMITTEE  OF  ARBITRATION. 

J.  B.  Thompson.  J.  H.  Skeele.  Jas.  H.  Swan. 

Jas.  McMullen.  M.  B.  Hull. 

COMMITTEE  OF  APPEALS. 

Jas.  C.  Brooks.  T.  W.  Harvey.  Geo.  E.  Wood. 

E.  K.  Hubbard.  Wayne  B.  Chatfield. 

EXECUTIVE  AND  AUDIT  COMMITTEE. 

Jno.  McLaren.  S.  A.  Irish.  I.  K.  Hamilton. 

COMMITTEE  OF  INSPECTION. 

Malcolm  McDonald.  S.  A.  Irish.  Alex.  Officer. 

B.  F.  Ferguson.  S.  K.  Martin. 

COMMITTEE  ON  DOCKS. 
Jno.  McLaren.  S.  A.  Irish.  A.  G.  Van  Schaick- 


LUMBERMAN'S  EXCHANGE.  107 


The  Past  and  Present  Executive  Officers  of  the 
Lumberman's  Exchange. 


T.  M.  Avery,  the  first  president  of  the  Lumberman's  Exchange* 
was  elected  to  the  chair  in  1869  for  the  year  ending  the  first  Monday  in 
March,  1870,  and  has  been  succeeded  in  each  of  the  subsequent  years 
since  that  date  by — 

Artemas     Carter     during  1870  and  1871, 

W.  D.  Houghtaling  «  1871  "  1873, 

A.  G.  Van  Schaick  "  1873  "  1874, 

William  Blanchard  "  1874  «  1875, 

A.  C.  Calkins  «  1875  "  1876, 

Thaddeus  Dean  "  1876  «  1877, 

Malcolm  McDonald  "  1877  «  1878, 

Thaddeus  Dean  «  1878  «  1879. 

W.  L.  Southworth  was  the  first  Secretary,  and  continued  to  occupy 
that  position  from  18G9  to  1874,  at  which  date  he  was  succeeded  by  George 
E.  Stockbridge,  who  still  performs  its  official  duties. 

All  of  the  gentlemen  who  have  occupied  the  Chair  are  still  living, 
and  largely  engaged  in  the  lumber  trade,  with  the  exception  of  Artemas 
Carter,  who  died  honored  and  respected  by  all  who  knew  him  on  May 
10th,  1877. 


108 


LAWS  OF  TRADE. 


RECEIPTS  AND  SHIPMENTS  OF  LUMBER, 

From  1847  to  1877,  inclusive. 


YEAB. 

RECEIPTS. 

SHIPMENTS. 

Lumber,  feet|8hlngles,No. 

Lumber,  feet|Shingles,No 

1847            

32,118,225 
60,009.250 
73,259,553 
100,364,779 
125.056,437 
147,816,232 
202,101,078 
228,336,783 
306,547,401 
456,673,169 
459,639,198 
278,943,000 
302,845,207 
262,494,626 
249,308,705 
305,674,045 
413,301,818 
501,592,406 
647,145,734 
730,057,168 
882,661,770 
1,028,494,789 
997,736,942 
1,018,998,685 
1,039,328,375 
1,183,659,280 
1,123368,671 
1,053,952,155 
1,157,194,432 
1,039,785,266 
1,066,462.361 

12,148,500 
20,050,000 
39,057,750 
55,423,750 
60,338,250 
77,080,500 
93,483,784 
82,061,250 
108,647,250 
135,876,000 
131,830,250 
127,565,000 
165,927,000 
127,894,000 
79,356,000 
131,255,000 
172,364.875 
190,169,750 
310,897,350 
400,125,250 
447,039,275 
514,434,100 
673166,000 
652,091,000 
647,595,000 
610,824,420 
517,923,000 
605,338,000 
635,708,000 
566,978,000 
546,442,000 

1848 

1849 

18iO 

1851            .                  

1852  

70,740,271 
88,909,348 
133,131,872 
215,585,254 
243,387,732 
311,608,793 
242,793.268 
226,120,389 
225,372,340 
189.379,445 
189,277,079 
221,709,330 
269,496,579 
385,353,678 
422  313,266 
518,973,354 
551,989,806 
581,533  480 
583,490,634 
541.222,543 
417,827,375 
561,544,379 

55,851,038 
71,442,550 
92,506,301 
134,793,250 
115,563,2)0 
154,827,750 
150,129,250 
195,117,700 
168,302,525 
94,421,186 
55,761,630 
102,634,447 
138,497,256 
258,351,450 
422,339,715 
480,930,500 
537,497,074 
638,317,840 
666,247,775 
558,385,350 
436,827,375 
407,505,650 

1853  

1854     

1855  

1856  

1857  

1858  

1859  

1860  

1861  ,  ... 

1862  

1863  

1864  .-  ... 

1865  

1866  

1867  :  

1868  

1869  

1870  

1871  

1872  

1873  

1874 

1875 

1876 

1877.  . 

586,722  821 

170,410,785 

LUMBERMAN'S   EXCHANGE. 


109 


LUMBER  STATISTICS. 

The  receipts  of  Lumber  in  1877  have  been  1,066,452,361  feet,  and  the  shipments  586.722,821  feet 
The  receipts  of  Shingles  for  the  year  have  been  546,409,000,  and  the  shipments  170,410,785. 


lows: 


The  stocks  on  hand  in  the  city  at  the  begining  of  each  of  the  last  four  years  were  as  fol- 


ARTICLES. 

Jan.  1,  1878. 

Jan.  1,1877. 

Jan.  1,  1876. 

Jan.  1,  1875. 

Sawed  Pine  Lumber  and  Timber  

Feet. 

385  560  024 

369  380  182 

352  578  336 

344  109  373 

Hewn  Pine  Timber  

Feet. 

825 

'     9'  391 

'l  42  '902 

Shingles  

125  640  000 

97  467  000 

83  230  750 

81  019'  ('X) 

Lath  

43'694'800 

36  823  400 

47  058*150 

39  551  850 

Pickets  

21206'0">0 

3'386'617 

2's6o'9°8 

2  499  881 

Cedar  Posts  

Number 

'380'341 

'442  '319 

4161680 

*29o'  533 

Average  Weekly  Prices  of  Lumber,  Shingles  and  Lath,  Vessel  Cargo, 
during  the  Season  of  Navigation  for  the  year  1877. 

COMPILED  BY  GEO.  E.  STOCKBRIDGB,  ESQ.,  SECRETARY  OP  THE  LUMBERMAN'S  EXCHANGE. 


WEEK  ENDING 

Choice 
Mill  Run 
Lumber, 
per  M  feet. 

Medium 
Mill  Run 
Lumber, 
per  M  feet. 

Coarse 
Common 
Lumber, 
per  M  feet. 

Ordinary 
Joists  and 
Scantling, 
per  M  feet. 

A 

Sawed 
Shingles, 
per  M. 

Lath 
per  M 

April  

14 

$12  00 

ft'i  •>"; 

21 

1200 

557  50 

28 

12  00 

May  

,  5 

1200 

7  00 

12 

12  25 

7  00 

1!) 

12  25 

7  nn 

90 

12  25 

7   9=5 

June  

2 

12  50 

7  50 

1  on 

9 

12  00 

9  nn 

8  00 

Hi 

12  00 

913 

12  50 

7  25 

t   OS 

30 

12  50 

9  9*> 

7  00 

July  

7 

12  00 

7  o« 

U 

12  00 

9  nn 

7  17  1/ 

•M 

12  00 

9  25 

38 

12  00 

8  50 

7  25 

1  SS 

1  «n 

August  ,  

4 

11  75 

10  25 

8  50 

7  50 

1  85 

11 

11  75 

8  50 

7  50 

18 

12  25 

7  50 

12  50 

11  00 

8  50 

7  50 

1  85 

September  

1 

1309 

10  7> 

850 

7  50 

1  90 

8 

13  01 

9  no 

7  00 

15 

13  00 

11  50 

9  50 

7  '»» 

1  95 

1     ->K 

13  50 

11  50 

9  50 

7  "50 

2  00 

1  9^ 

•"( 

14  10 

9  00 

7  50 

1  •« 

October  

6 

14  00 

11  50 

9  oo 

8  00 

2  00 

1  Of; 

13 

14  00 

12  00 

9  50 

8  25 

2  1-21/ 

1  25 

1400 

12  00 

9  KQ 

8  75 

2  °5 

1  25 

°7 

14  12 

12  00 

9  50 

8  75 

•>  25 

November  

8 

14  0054 

12  50 

9  50 

8  00 

2  25 

1  25 

10 

14  50 

12  25 

9  50 

7  50 

2  25 

1  25 

17 

15  50 

I9  00 

9  50 

7  75 

2  25 

"I 

15  50 

12  00 

9  50 

7  75 

225 

1  50 

December  

1 

15  00 

11  50 

950 

7  75 

2  25 

1  60 

8 

11  00 

950 

7  50 

225 

1  fin 

Lumberman's  Exchange, 

And    the    Lumber   Trade    of    Chicago. 


Keeping  pace  with  all  other  commercial  interests  of  the  city  until 
the  business  attained  prodigious  proportions,  the  lumbermen  of  Chicago 
found  it  a  necessity  to.  organize,  in  the  year  1869,  "The  Lumberman's 
Exchange,"  and  gave  the  reasons  therefor  in  the  preamble  to  the  rules 
and  by-laws  governing  the  association,  which  are  herewith  given.  "  Chi- 
cago having  become  the  great  lumber  market  of  the  Northwest,  situated 
midway  between  the  pineries  ot  the  lakes  and  the  sections  that  are  desti- 
tute of  lumber,  enjoying  unsurpassed  facilities  of  transportation,  both  by 
lake  and  railway;  with  this  vast  business  employing  an  amount  of  capital 
second  to  no  other  branch  of  trade  we  deem  it  important  that  an  organiza- 
tion should  be  effected  which  should  embrace  this  entire  lumber  interest, 
and  further  believing  that  this  organization  is  demanded,  to  regulate 
transactions,  adjust  differences,  promote  fair  dealing,  and  furnish  all  pos- 
sible information  that  can  benefit  its  members,  we  hereby  organize  an 
association." 

The  necessities  for  such  an  association  were  abundant,  and  the  suc- 
cess that  has  attended  it  since  its  organization  have  proven  the  wisdom 
of  its  formation.  The  city  of  Chicago  is  most  admirably  situated  for  a 
lumber  market.  The  lumber  regions  of  Michigan  and  Wisconsin,  inex- 
haustible as  it  would  almost  seem,  are  all  accessible  to  the  lakes,  and 
lumber  can  be  transported  hither  at  a  trifling  expense,  so  that  in  pur- 
chasing here,  dealers  in  remote  places  can  do  almost  as  well  as  if  they 
were  to  transact  their  business  in  the  very  heart  of  the  lumber  region, 
which  is  many  miles  distant.  This  very  fact  coupled  with  another,  that 
her  merchants  having  an  almost  new  and  extensive  part  of  our  country 
(the  Northwestern  States),  and  which  is  in  a  very  great  measure  barren 
of  timber  to  supply  with  lumber,  have  made  her  what  she  is  to-day,  the 


LUMBERMAN'S    EXCHANGE.  Ill 

ONE  OF  THE  OLDEST  ESTABLISHED  HUMS  IN  THE  TRADE- 


II  .  H.  GARDNER.  JOHN  SPRY. 

Gardner  &  Spry, 
Lumber  Merchants, 

OFFICE  &;  YARD 

162  BEACH  STREET,  near  12th. 

Have  constantly  on  hand,  full  and  complete  stocks  of  all  grades 
of  dry 


MILL  RUN  LUMBER  from  Dock,  in  large  or  small  Quantities. 

&mwm9  M%°&. 

Sash,   Doors,   Blinds,   Mouldings,   Etc. 

AT  LOWEST  FACTORY  PRICES. 

Our  location  enables  us  to  obtain  Cars   without  delay,  and  we 
guarantee  prompt  shipments. 

Customers  can  rely  upon  having  their  orders  by  mail  promptly 
and  carefully  filled  at  the  lowest  market  prices. 

Correspondence  promptly  attended    to.      Price    lists   upon    ap- 
plication. 


11?.  LAWS  OF  TRADE. 

greatest  lumber  market  of  the  world.  For  many  years  Albany,  N.  YM 
enjoyed  this  distinction,  and  is  quite  an  important  market  yet,  but  sinks 
into  insignificance  when  compared  with  the  metropolis  of  the  West. 

There  are  in  the  confines  of  Chicago  at  this  time  over  two  hundred 
establishments  engaged  in  the  business  as  dealers,  manufacturers,  com- 
mission men,  and  planing  mill  operators,  and  the  subordinates  connected 
therewith  if  collected  together  in  a  body,  would  form  a  fair  sized  army  for 
invasion,  and  in  the  prosecution  of  this  vast  business  there  is  employed 
an  estimated  capital  of  eighty  million  dollars  both  in  Chicago  and  at  the 
mills  in  the  lumber  country. 

The  growth  of  the  business  from  its  comparative  insignificance  in 
the  year  1847,  which  is  shown  by  a  tabulated  statement  further  on,  to  its 
present  extraordinary  dimensions  seem  marvelous.  But  we  might  ask, 
what  is  either  wonderful  or  marvelous  in  a  city  that  has  made  such 
gigantic  and  unparalleled  strides  in  commerce  in  so  short  a  period  of 
time  as  Chicago  has  done?  Her  statistics  in  each  department  of  trade 
are  before  the  world,  and  we  leave  it  to  such  evidence,  to  bear  testimony 
to  the  position  she  is  entitled  to. 

The  membership  of  the  "  Lumberman's  Exchange  "  is  composed  of 
nearly  all  of  the  leading  lumber  firms  of  the  city,  who  contribute  liberally 
to  its  support.  It  furnishes  to  the  trade  figures  of  the  stock  on  hand  on 
the  first  of  each  month,  and  keeps  it  informed  of  the  stock  of  lumber  and 
logs  at  competing  points.  Its  management  throughout  the  administra- 
tions of  its  different  executive  officers  since  its  organization  has  been  of 
so  high  an  order  that  it  is  regarded  by  the  trade  as  the  model  Lumber 
Exchange  of  the  country,  and  its  statistics  are  considered  valuable  infor- 
mation to  form  the  basis  of  individual  opinion  at  all  times. 

The  lumbermen  of  Chicago  are  a  wide-awake,  active  and  intelligent 
body  of  men,  and  some  of  them  rank  among  the  foremost  business  men 
of  the  Northwest.  And  it  is  such  men  that  have  materially  contributed 
to  give  to  Chicago  her  wide-spread  fame  for  peerless  enterprise,  indom- 
itable perseverance  and  energy,  business  sagacity  and  commercial  in- 
tegrity. 


LUMBERMAN'S  EXCHANGE.  113 


Lumber  Inspection. 


NOTE. — We  are  indebted  to  Geo.  E.  Stockbridge,  Esq.,  the  efficient 
and  esteemed  secretary  of  the  Lumberman's  Exchange  for  the  following 
information,  and  we  herewith  avail  ourselves  of  the  occasion  to  make  our 
acknowledgments  for  this  and  other  courtesies. 

There  are  in  practice  in  the  Chicago  lumber  market,  three  inspections, 
viz:  Yard  inspection,  or  when  the  seller  of  a  cargo  of  lumber  agrees  to 
sell  by  the  sorting  of  the  yard  to  whom  the  lumber  is  sold,  and  the  old 
Chicago  Lumberman's  Board  of  Trade  of  inspection,  which  is  however 
very  rarely  used,  and  the  following  inspection:  When  a  cargo  is  sold  by 
inspection,  and  no  inspection  stated,  is  the  legal  inspection  of  the  Lum- 
berman's Exchange  and  the  trade  generally,  but  ninety-five  per  cent,  of 
all  the  lumber  sold  by  cargo  is  sold  straight  measure,  or  as  the  cargo  runs 
without  inspection. 

On  March  15th,  1875,  the  following  resolutions  were  adopted  unani- 
mously at  a  meeting  of  the  members  of  the  Lumberman's  Exchange, 
and  still  continue  to  have  legal  force  under  this  date: 

Resolved,  That  the  rules  governing  the  grades  and  qualities  of 
lumber  as  inspected  from  cargoes  in  the  city  of  Chicago  at  present  in 
force,  be  and  the  same  are  hereby  repealed. 

Resolved,  That  we,  the  Directors  of  the  Lumberman's  Exchange  of 
Chicago  do-hereby  adopt  the  following  as  the  standard  for  the  inspection 
of  lumber  in  this  market,  viz: 

All  the  merchantable  white  pine  lumber  shall  be  classified  as  fol- 
lows for  the  purpose  of  inspection .  first  clear,  second  clear,  third  clear, 
common,  and  culls,  and  boards  six  inches  wide,  shall  be  known  as  strips; 
Norway  pine  shall  be  classified  as  common  and  culls,  except  as  herein- 
after provided. 

First  clear  lumber  shall  not  be  less  than  eight  inches  wide,  twelve 
feet  long  and  one  inch  thick,  and  at  such  width  and  up  to  ten  inches  wide, 
shall  be  free  from  all  imperfections.  If  the  width  is  twelve  inches,  defects 
shall  be  allowed  that  will  be  equal  in  injury  to  the  knot  of  one  inch  in 
diameter,  or  sap  that  »vill  be  equal  to  one  and  one-half  inches  on  one 
surface.  If  the  width  is  sixteen,  defects  shall  be  allowed  that  will  be 
equal  in  injury  to  a  knot  of  two  inches  in  diameter,  or  sap  that  will  h^ 
equal  to  two  inches  en  one  surface.  If  the  width  is  twenty  inches. 


114  LAWS  OF  TRADE. 

in  diameter,  or  sap  that  will  be  equal  to  four  inches  in  width  on  the 
edges.  If  the  width  is  twenty  inches,  defects  shall  be  allowed  that  shall 
be  equal  in  injury  to  a  knot  of  three  inches  in  diameter,,or  sap  thit  will 
be  equal  to  five  inches  in  width  on  the  edges.  A  straight  split  shall  be 
allowed  in  this  quality  as  before,  provided  in  boards  of  the  width  of 
twelve  inches  and  over,  and  counted  as  one  defect.  % 

Third  clear  lumber  shall  not  be  less  than  seven  inches  wide, 
twelve  feet  long  and  one  inch  thick,  and  at  such  width  and  up  to  ten 
inches,  defects  shall  be  allowed  that  will  be  equal  in  injury  to  a  knot  one 
and  a  half  inches  in  diameter,  or  sap  that  will  be  equal  to  One  and  a  half 
inches  in  width  on  the  best  side.  If  the  width  is  twelve  inches,  defects 
shall  be  allowed  that  will  be  equal  in  injury  to  a  knot  of  two  and  a  half 
inches  in  diameter,  or  sap  that  will  be  equal  to  two  inches  wide  on  the 
best  side.  If  the  width  is  sixteen  inches,  defects  shall  be  allowed  that 
will  be  equal  in  injury  to  a  knot  of  four  inches  in  diameter,  or  sap  that 
will  be  equal  to  four  inches  wide  on  the  best  side.  If  the  width  is 
twenty  inches,  defects  shall  be  allowed  that  will  be  equal  to  injury  to  a 
knot  of  five  inches  in  diameter,  or  sap  that  will  be  equal  to  six  inches  on 
the  best  side.  But  sap  in  no  case  to  exceed  one-half  the  surface  on  the 
poorest  side.  In  this  quality  shall  be  included  pieces  ten  feet  long,  and 
not  to  have  more  than  a  due  proportion  of  defects.  Also,  all  pieces 
six  inches  wide  and  more  than  one  inch  thick,  with  not  more  than  two 
small  sound  knots,  or  sap  more  than  one  inch  in  width  on  one  side. 

First  clear  strips  shall  be  six  inches  wide,  one  inch  thick,  and  not 
less  than  twelve  feet  in  length  and  free  from  all  inspections. 

Second  clear  strips  shall  be  the  length,  width  and  thickness  of  first 
clear,  and  may  have  two  small  sound  knots,  or  if  no  knots,  sap  equal  to 
one  inch  in  width  on  one  edge  of  one  side. 

Third  clear  strips  shall  be  of  the  width  and  thickness  of  first  clear 
strips,  and  may  have  three  small  sound  knots  with  sap  one  inch  on  one 
side,  but  if  no  knots,  then  sap  equal  to  two  inches  on  one  side  may  be 
allowed  to  be  free  from  rot,  split  and  shake.  First  and  second  clear 
Norway  strips  of  full  width  arid  thickness,  and  first  and  second  clear 
white  pine  strips,  ten  feet  in  length,  also  first  and  second  clear  strips 
rejected  on  account  of  thickness  and  not  less  than  five  inches  in  width 
shall  be  classed  in  this  quality. 

Common  lumber  shall  include  all  boards,  planks,  scantlings,  strips, 
joist,  timber  and  lumber  not  otherwise  defined,  which  is  not  as  good  as 
i'iird  clear,  but  is  generally  of  a  sound  character,  well  manufactured,  of 


LUMBERMAN'S  EXCHANGE.  115 

defects  shall  be  allowed  that  will  be  equal  in  injury  to  a  knot  two  and 
one-half  inches  in  diameter,  or  sap  that  will  be  equal  to  three  inches  in 
•width  on  one  surface. 

The  Inspector  shall  take  particular  notice,  and  shall  allow  a  due 
proportion  of  defects,  for  all  pieces  of  widths  between,  or  above  the  given 
standard ;  also  shall  allow  additional  defects  as  the  lengths  inarease 
above  twelve  feet  long  in  proportion  to  such  increased  dimensions.  He 
shall  also  allow  as  follows,  in  each  of  the  three  grades  of  clear  lumber, 
viz:  For  each  additional  half  inch  in  thickness,  additional  defects  in 
proportion,  that  shall  be  equal  in  injury  to  a  knot  of  one  quarter  of  an 
inch  more  in  diameter,  or  sap  that  will  be  equal  to  one-quarter  of  an 
inch  more  in  width.  All  the  pieces  shall  be  well  manufactured  and  of 
full  thickness,  and  all  sap  to  be  free  from  black  stain,  that  is  of  such 
character  that  cannot  be  removed  by  dressing,  and  no  piece  shall  be 
allowed  with  more  than  one  straight  split,  and  that  not  to  be  over  one- 
fifth  the  length  of  the  piece,  which  shall  be  counted  as  one  defect. 

Second  clear  lumber  shall  not  be  less  than  eight  inches  wide,  twelve 
feet  long  and  one  inch  thick,  and  at  such  width  and  up  to  ten  inches 
wide,  defects  shall  be  allowed  that  will  be  equal  in  injury  to  a  knot  of 
three  quarters  of  an  inch  in  diameter,  or  sap  that  will  be  equal  to  three- 
quarters  of  an  inch  in  width  on  one  surface.  If  the  width  is  twelve 
inches,  defects  shall  be  allowed  that  will  equal  in.  injury  to  a  knot  one 
and  one  half  inches  in  diameter,  or  sap  that  will  be  equal  to  three  inches 
in  width  on  the  edges.  If  the  width  is  sixteen  inches,  defects  shall  be 
full  thickness,  and  free  from  large  loose  knots,  and  bad  shakes  that  show 
on  both  sides  of  the  pieces.  Scantlings,  joists  and  .timber  must  be  free 
from  imperfections  which  so  weaken  the  piece  that  it  cannot  be  used  for 
substantial  building  purposes.  Scantling,  joist  and  timber  made  from 
worm-eaten  logs,  and  pieces  with  a  small  streak -of  rot,  when  not  so  badly 
damaged  as  to  render  the  same  unfit  for  ordinary  uses  of  common  lumber, 
shall  belong  to  this  quality.  One  straight  split  shall  be  allowed,  provided 
that  it  does  not  exceed  one  quarter  the  length  of  the  piece.  Pieces  that 
have  not  more  than  two  auger  holes  which  are  placed  near  shall  be 
allowed  in  this  quality,  provided  they  are  measured  in  length  of  even 
numbers  between  said  augur  holes,  and  conform  in  all  other  respects  to 
the  requirements  of  this  quality.  No  lumber  under  ten  feet  in  length 
shall  be  considered  as  merchantable. 

Culls  shall  constitute  the  lowest  grade  of  merchantable  lumber,  and 
shall  include  all  lumber  not  as  good  as  common,  which  can  be  used  for 
ordinary  purposes  without  a  waste  of  more  than  one-half. 

The  meeting  then  adjourned,  to  meet  afc  the  rooms  of  the  Lumber- 
man's Board  of  Trade  on  Tuesday,  March  16,  1879. 


116  LAWS  OF  TRADE. 

GOSS  &   PHILLIPS   MANUFACTURING   COMPANY. 

LUMBER,    SASH,    DOORS,    BLINDS,    ETC. 

The  chronicler  of  Chicago's  progress  meets  with  illustrations  num- 
erous and  vivid  as  he  visits  the  almost  innumerable  prominent  houses  to 
be  found  in  the  city.  Some  of  these  establishments  have  a  history  of 
their  own,  running  back  many  years.  Others  are  just  making  a  history, 
and  as  we  first  visit  one  and  then  another  we  find  ample  food  for  reflec- 
tion in  the  form  of  memoranda  relative  to  the  proportions  and  progress 
of  our  vast  manufacturing  industries.  In  the  changes  that  have  accom- 
panied the  flight  of  time,  many  of  the  old  lirms  of  to-day  have  been  co- 
laborers  in  the  laudable  work  of  building  up  and  extending  the  commer 
cial  interests  of  our  city,  and  by  their  enterprising  efforts  the  numer- 
ous productive  industries  that  have  made  the  "  Garden  City"  famous 
throughout  this  country  and  Europe  have  flourished  to  a  degree  surpris- 
ing to  the  manufacturers  of  other  and  less  fortunate  cities. 

It  is  well  known,  as  we  have  stated,  that  Chicago  is  the  leading  lum- 
ber market  of  the  world,  and  by  reason  of  her  unequaled  geographical 
position  as  a  distributing  point,  and  the  superior  class  of  products  turned 
out  by  her  manufacturers,  she  has  gained  a  prestige  second  to  that  of  no 
other  commercial  centre  in  either  hemisphere. 

Among  all  the  establishments  engaged  in  the  lumber  business  and 
manufacture  in  Chicago,  there  is  none  more  widely  known  or  in  higher 
repute  than  the 

GOSS    &    PHILLIPS  MANUFACTURING    COMPANY. 

This  is  the  oldest  concern  in  this  business  in  the  city,  having  been 
started  in  1848  by  Mr.  Daniel  Goss,  the  present  Vice  President  of  the 
Company.  The  trade  assumed  extensive  proportions  within  a  few  years 
thereafter,  and  in  1871  a  stock  company  was  organized,  since  which  time 
the  business  has  attained  a  magnitude  excelled  by  no  similar  establish- 
ment in  the  country.  The  present  officers  of  the  company  are:  William 
B.  Phillips,  President;  Daniel  Goss,  Vice  President;  Cornelius  Curtis, 
Secretary  and  Treasurer. 

In  the  production  of  sash,  doors,  blinds,  moldings,  balusters,  newels, 
stair  rails,  etc.,  they  transact  an  immense  and  constantly  increasing  busi- 
ness, having  unsurpassed  facilities  therfor.  In  the  department  of  balus- 


GOSS  &  PHILLIPS,  Manufacturing  Co. 

MANUFACTURERS  OF 


SASH, 

BLINDS, 

MOULDINGS, 

STAIR 
RAILING, 
ASH,  WALNUT, 

MAPLE  and 
SOUTHERN 

PINE 

FLOORING, 
SIDING, 

CEILING, 


DOORS, 
STAIRS, 
BALUSTERS, 
IsEWEL  POSTS, 
DIMENSION 
SHINGLES, 
PICKETS,  Etc. 
DEALERS 

IN 
LUMBER, 

LATH, 
AND 
SHINGLES. 


C±3 
-=3 
ZLJ3 


02 

OC2 


118  LAWS  OF  TRADE. 

ters,  newels  and  stair  rails  they  do  the  handsomest  and  most  elaborate 
work  of  any  concern  in  the  Union.  Some  elegant  and  notable  speci- 
mens of  their  taste  and  skill  in  this  line  may  be  seen  in  the  Palmer 
House  and  the  Grand  Pacific  Hotel,  Chicago,  the  Fisk  University,  Nash- 
ville, Tenn.,  the  residence  of  the  British  Minister  at  Washington,  D.  C., 
and  the  Peoria  Court  House  as  well  as  in  many  other  of  the  finest  public 
and  private  buildings  throughout  the  country. 

An  important  auxiliary  of  their  business  is  the  manufacture  of  all 
kinds  of  materials  for  dwellings,  etc.,  which  can  be  transported  to  any 
part  of  the  world  and  erecced  without  any  difficulty,  every  piece  being 
accurately  fitted,  marked  and  numbered.  Their  trade  in  all  lines  ex- 
tends not  only  to  all  sections  of  the  United  States,  but  to  South  Amei-icar 
Australia,  Southern  Africa  and  other  foreign  countries. 

A  new  feature  cf  their  business  is  the  manufacture  of  the  Behel 
patent  blind,  which  is  generally  conceded  to  be  the  best  and  most  desir- 
able blind  extant.  It  is  adapted  for  both  outside  and  inside  use,  and 
effectually  excludes  rain,  dust  and  sunlight.  Its  cost  is  but  slightly  in 
excess  of  the  ordinary  blinds,  and  it  is  being  very  extensively  adopted  by 
builders  here  and  elsewhere,  giving  entire  satisfaction  in  every  case. 
They  will  furnish  to  applicants  an  illustrated  circular  containing  full  in- 
formation. They  also  issue  descriptive  catalogues  of  all  their  manu- 
factures. 

Some  idea  of  the  magnitude  of  their  business  may  be  formed  from 
the  fact  that  they  consume  in  their  productions  the  enormous  amount  of 
13,000,000  feet  of  lumber  annually.  Their  works,  located  on  West 
Twenty-second  and  Fisk  streets,  are  the  most  extensive  of  the  kind  in 
the  country,  are  substantially  constructed  of  brick,  and  contain  the  latest 
improved  machinery  and  appliances  for  the  prosecution  of  their  varied  in- 
dustries. From  300  to  350  experienced  workmen  are  now  employed, 
and  every  department  is  operated  *to  its  full  capacity  in  order  to  promptly 
meet  the  requirements  of  their  trade.  Their  docks,  buildings  and  yards 
coVer  a  large  area,  affording  conveniences  and  facilities  for  all  operations. 
In  addition  to  their  manufacturing,  they  assort,  dock,  dress  and  ship 
largely  of  lumber  of  every  grade  and  kind.  All  regular  sizes  and  styles 
of  their  products  are  kept  constantly  in  stock,  so  that  orders  for  either 
the  home  or  export  trade  can  be  promptly  supplied. 


PRODUCE    EXCHANGE. 


PRESIDENT D.  RICHARDS. 

FIRST  VICE-PRESIDENT .W.   W.  DEXTER. 

SECOND  VICE-PRESIDENT CHAS.  BALTZ. 

SECRETARY  AND  TREASURER ...  JOHN  E.  CO WLES. 


COMMITTEE  OF  ARBITRATION. 

C.  H.  WEAVER,  F.  NICKERSON, 

J.  M.  CYRUS,  NATHAN  SMITH, 

• 

A.  BUTTS,  A.  L.  TUCKER, 

J.  N.  ADAMS,  C.  C.  RICE. 


DIRECTORS. 

GEORGE  P.  BRAUN,  A.  L.  TUCKER. 

B.  F.  BAKER.  C.  F.  DEXTER. 

A.  ALBRO. 


COMMITTEE  OF  APPEALS. 

A.  L.  BARBER,  N.  W.  HEWES, 

P.  B.  WEARE,  HENRY  HEMMELGABN, 

L.  S.  CHASE,  L.  E.  FITTS, 

E.    S.  WATTS,  JOHN  P.  BARRON. 


The  Produce  Exchange  and  the  Produce  Commission  Business 


OF  CHICAGO. 


The  Produce  Commission  Merchants  of  Chicago,  believing  that,  as 
an  independent  body  of  the  Board  of  Trade,  it  would  be  mutually  ad- 
vantageous to  the  producer  and  the  buyer  to  establish  a  Produce  Ex- 
change "  to  foster  and  protect  the  interests  which  are  not  represented  by 
the  Board  of  Trade,  as  well  as  to  gain  the  advantages  resulting  from  the 
centralization  of  interests  by  bringing  the  buyer  and  seller  at  once  to- 
gether; thus  giving  to  the  buyer  a  place  where  he  can  at  all  times  find 
property  for  &ale,  and  the  seller  a  mart  for  his  merchandise,"  perman- 
ently organized  on  May  9,  1874,  by  the  adoption  of  a  Constitution  and 
By-Laws  and  the  election  of  officers,  the  "  Produce  Exchange  of 
Chicago." 

The  advantages  and  objects  in  view  to  be  gained  in  the  formation  of 
such  an  association,  having  under  its  control  the  equitable  interests  of 
both  buyer  and  seller,  and  the  providing  to  each  party  a  suitable  business 
resort,  were,  in  every  manner  commendable,  and  imparted  to  the  enter- 
prise an  impress  of  stability  and  dignity  that  properly  belong  to  a  body 
of  high-minded,  honorable  business  men.  And  when  we  consider  the 
steady  and  rapid  growth  of  the  West — its  marvelous  progress  in  com- 
merce, the  immensity  of  its  productions,  its  ability,  when  commensurately 
peopled  with  producers,  as  it  most  assuredly  will  be  to  supply  the  wants 
and  feed  the  hungry  millions  of  the  world — the  vast  amount  of  business 
controlled  at  this  time  by  the  commission  merchants,  it  was  imperative  to 
meet  the  demands  arising  therefrom  that  such  an  association  should  be 
organized,  and  we  are  pleased  to  state  that  since  its  formation  it  has 
fully  responded  to  all  the  purposes  for  which  it  was  established. 

The  Chicago  market  offers  great  and  unsurpassed  inducements  to  the 
shippers'of  produce  of  the  West,  possessing  a  net-work  of  railway  lines 
radiating  to  and  intersecting  at  all  points  in  every  direction,  together  with 


PRODUCE  COMMISSION   BUSINESS.  121 

a  water  route  of  limitless  capacity  which  she  derives  froir  Lake  Michigan 
and  the  canal  system  to  receive  merchandise.  She  has  likewise  equal 
facilities  for  its  shipment  to  each  and  all  of  the  Eastern  and  Southern 
markets,  and  her  merchants,  with  keen  foresight  and  full  appreciation  of 
the  situation  to  protect  the  interest  of  the  shippers  have  made  abundant 
provisions  of  improved  facilities  in  the  storing  of  all  articles  of  produce. 
Cool  and  dry  storage  has  been  provided  to  an  extent  which  can  not  be 
found  in  any  other  city  of  the  country.  And  acting  in  concert  with  the 
prevailing  spirit  of  enterprise,  everything  has  been  done  that  will  make 
this  market  acceptable  and  advantageous  both  to  the  producer  and  the 
buyer.  And  we  think  it  is  not  arrogant  or  undemonstrable  for  Chicago 
to  claim  that  she  is  the  Metropolis  of  the  West.  For  the  statistics 
of  the  amount  of  business  transacted  annually  in  all  departments  of 
commercial  pursuits,  when  compared  with  those  of  other  cities,  estab- 
lish the  fact  that  she  is  pre-eminently  the  center  of  trade  of  the  West. 
And  with  the  knowledge  that  the  great  and  rapidly  growing  States  of  the 
North  West  are  emptying  their  varied  productions  into  her  lap,  induces 
the  buyers  from  all  parts  of  the  country  to  make  this  market  their  ob- 
jective point  for  their  operations.  In  the  very  nature  of  things  Chicago 
is  destined  ever  to  be  the  great  depot  and  distributing  point  for  the  agri- 
cultural products  of  the  West — and  her  hundreds  of  enterprising  and 
reliable  commission  merchants  are  determined  to  keep  abreast  of  the  re- 
quirements of  this  constantly  expanding  traffic. 

The  "Produce  Exchange"  is  in  its  infancy,  but  for  the  same  period 
of  time  since  its  organization,  the  association  has  shown  more  vitality 
than  did  the  Board  of  Trade  in  its  early  years.  Its  government  and  its 
future  permanency,  is  in  the  hands  of  men  of  large  experience  in  this 
line  of  industry,  who  we  doubt  not  will  prove  themselves  tobe  as  wise  and 
sagacious  as  were  those  who  thirty  years  ago  first  laid  the  foundation  of 
the  Board  of  Trade.  And  that  Chicago  will  regard  the  association  with 
equal  pride — Mr.  D.  Richards  who  was  chosen  President,  at  the  annual 
meeting  held  in  the  month  of  May,  1878,  is  a  gentleman  most  favorably 
known,  having  been  engaged  for  the  past  twenty  years  in  this  city  as  deal- 
er in  Butter  and  Cheese,  and  so  extensive  has  his  business  been,  that  he 
is  not  only  known  throughout  our  own  country,  but  is  equally  as  well 
known  in  Europe.  Many  years  ago,  when  western  butter  was  far  infer- 
ior to  the  quality  that  comes  from  our  creameries  to-day,  Mr.  Richards 
was  engaged  in  shipping  to  Europe  grease  butter,  which  was  .used  for 
greasing  sheep  in  the  highlands  of  Scotland.  This  grade  of  butter  was 


122  LAWS  OF  TRADE. 

the  only  one  that  was  permitted  to  land  free  of  duty  on  the  shores  of  the 
"tight  little  island j"  better  qualities  of  butter  was  charged  20  per  cent, 
duty.  And  the  inspectors  in  those  days,  so  as  to  avoid,  imposition  being 
practiced  upon  the  revenue  laws,  when  butter  was  received  at  the  Cus- 
tom House,  resorted  to  the  practice  of  steeping. a  rod  or  stick  into  hot 
tar,  and  then  run  it  through  the  packages  so  as  to  make  it  grease  butter 
whether  it  was  or  not.  In  subsequent  years  Mr.  Richards  has  been  one 
of  the  principal  packers  and  shippers  of  fine  grades,  and  of  second  qual- 
ity of  butter  suitable  for  the  table,  as  also  for  bakers  use,  for  which  there 
was  always  a  large  demand.  But  the  West,  always  progressive,  takes 
precedence  in  the  quality  of  her  Butter  over  all  other  sections,  the  yield  of 
her  creameries  ar^  now  regarded  in  New  York  as  in  all  other  markets  as 
superior  to  any  butter  no  matter  from  whence  it  comes  Mr.  Richards 
with  his  long  experience  still  continues  to  make  a  specialty  of  butter  and 
cheese — is  engaged  in  shipping  to  all  points,  mostly  in  car  lots.  He 
is  regarded  as  one  of  the  very  best  judges  of  butter  in  the  country.  He 
was  selected  by  the  butter  dealers  as  one  of  the  judges,  in  connection 
with  Captain  Hunter,  of  the  firm  ^of  Hunter,  Walton  &  Co.  of  New  York 
city,  a  well  known  expert,  at  the  "Fair"  held  at  Uhlich's  Hall,  in  the  win- 
ter of  1877.  At  which  place  he  demonstrated  the  superiority  of  his  judg- 
ment by  marking  on  the  same  line  of  butters  which  had  been  selected  by 
Eastern  experts. 


We  copy  the  following  from  the  minutes  of  a  meeting  of  the  mem- 
bers of  the  Produce  Exchange: 

The  vexed  question  as  to  the  size  and  style  of  the  fruit  package  to 
be  hereafter  used  in  this  market  seems  to  have  been  practically  settled 
at  last  by  the  joint  action  of  the  Produce  Exchange  and  the  city  authori- 
ties. The  former  organization  recently  passed  the  following  preambles 
and  resolutions  by  an  almost  unanimous  vote: 

"WHEREAS,  The  question  of  packages  of  fruit  has  been  for  the  past 
two  years  thoroughly  agitated  in  both  city  and  country,  to  such  an  extent 
in  the  city  that  the  City  Government  felt  compelled  to  pass  ordinances 
last  season  in  relation  thereto,  and  in  many  country  places  dealers  in 
small  fruits  are  compelled  to  empty  out  of  boxes  and  measure  up  by  the 
'  quart  to  satisfy  their  customers,  and, 

WHEREAS,  Although  the  city  authorities  have  been  defeated  before 
the  courts  on  the  ordinances  passed  last  season,  they  still  propose  to  pass 
such  ordinances  as  will  stand  the  test  of  the  law;  and, 

WHEREAS,  If  such  ordinances  should  be  of  a  condemnatory  nature 
by  inspectors  appointed  by  the  city  authorities,  which  is  not  improbable, 
it  would  lead  to  great  annoyance  and  loss  to  the  shippers;  and, 

WHEREAS,  Manufacturers  have  not  yet  made  the  packages  for  the 
coming  season's  fruit,  nor  have  the  growers  yet  bought  them;  and, 

WHEREAS,  We  fully  believe  it  is  for  the  Interest  of  the  fruit  trade 
generally,  and  each  individual  shipper  as  well,  to  have  all  fruits  put  up  in 
full-sized  packages,  and  to  be  of  good  uniform  quality,  be  it 

Resolved,  That  we,  the  fruit  commission  men  of  Chicago,  assem- 
bled, do  strongly  and  unqualifiedly  recommend  to  all  our  shippers  that 
they  use  for  all  small  fruits  the  full  quart-box  of  sixty-seven  cubic  inches, 
we  fully  believing  that  it  can  be  used  for  transportation  as  well  as  any- 
thing smaller,  except  for  red  raspberries,  and  for  them  we  as  strongly 


124  LAWS  OF  TRADE. 

urge  full  pint.  We  most  heartily  condemn  the  "  so-called  "  one-third 
quart  box,  or  the  use  of  pint  boxes  for  anything  except  red  raspberries. 
For  all  Southern  fruits,  such  as  peaches,  pears,  etc.,  we  recommend  the 
continuance  in  use  of  the  third-bushel  box  as  being  the  best.  For  Mich- 
igan fruits  of  similar  kinds  we  cannot  too  strongly  urge  the  use  of  the 
full-peck  basket  only.  It  is  sma1!  enough  for  any  trade,  and  if  the  fruit 
is  of  uniform  quality  through  the  basket  no  one  can  complain.  Whortle 
or  blueberries  come  to  our  market  in  all  sizes  of  boxes  and  drawers- 
The  least  we  can  recommend  our  shippers  is  to  measure  the  packages 
fairly  and  mark  the  number  of  quarts  contained  in  such  package  plainly- 
It  causes  you  but  little  trouble,  and  saves  us  a  great  deal  of  guessing, 
and  our  customers  from  a  great  deal  of  fault-finding. 

Resolved,  That  in  the  shipment  of  fresh  vegetables,  that  which 
purports  to  be  a  bushel-box  shall  hold  a  bushel ;  much  fault  has  been 
found  with  these  packages  the  past  season. 

Resolved,  That  a  barrel  of  apples  shall  be  three  bushels.  The  bar- 
rel certainly  should  not  be  less  than  a  full-sized  flour  barrel. 

Resolved,  That  in  the  future  in  making  and  quoting  the  market,  the 
price  shall  be  given  on  full  measure  packages.  Short  measure  wil  be 
sold  in  proportion.  In  other  words  we  do  not  expect  to  get  any  more 
than  its  proportionate  value  for  any  fruit  packed  in  less  than  the  full-sized 
package . 

Resolved,  That  we  have  no  doubt  but  that  the  Common  Counsel  of 
Chicago  will  pass  further  ordinances  on  this  question  ;  and  if  they  should 
be  of  a  condemnatory  nature,  the  only  thing  we  could  do  would  be  to 
send  you  the  inspector's  certificate  in  place  of  an  account  of  sales. 

Resolved,  That  we  do  not  countenance  any  deception  in  quantity  or 
quality  of  fruit,  either  in  original  packages  or  re-packed  here. 

Resolved,  That  we  extend  the  hand  of  cordial  fellow-ship  to  all  of  the 
shippers  that  in  the  past  have  used  the  full-sized  package  arid  taken  pains 
to  properly  pack  their  fruit.  We  know  it  has  paid  you  better  to  do  it, 
it  pays  us  better  to  handle  it,  and  pays  the  consumer  that  uses  it,  and  we 
hope  the  coming  season,  will  see  it  the  rule,  and  not  the  exception. 

The  following  resolution  was  also  adopted  and  a  committee  ap- 
pointed : 

Resolved,  That  the  Chair  be  authorized  to  appoint  a  committee  of 
five,  to  confer  with  the  City  Law  Department  and  the  Judiciary  Com- 
mittee of  the  Council  in  regard  to  the  differences  that  do  fexist,  and  that 
may  arise  between  the  wholesale  fruit  dealers,  and  the  city  authorities. 


PRODUCE  COMMISSION  BUSINESS.  125 

.The  City  Counsel  on  Monday  evening,  February  18th,  1878,  adopted 
the  following  Ordinance  on  the  same  subject,  which  has  received  the 
Mayor's  signature  and  thus  become  a  law  : 

Be  it  ordained,  etc.  :  SECTION  1.  All  fruits  and  berries  sold  or  offered  for  sale 
within  the  City  of  Chicago  to  consumers  or  to  retail  dealers  within  the  said  city 
shall  be  sold  and  offered  for  sale  only  by  barrel,  bushel,  or  some  aliquot  pait  <>f  a 
bushe),  according  to  the  table  of  dry  measure,  or  in  packages  which  contain  in  full 
measure  a  barre',  a  bushel,  or  some  aliquot  part  of  a  bushel,  according  to  the  table 
of  drv  measure.",  or  by  the  pound:  Provided,  that  for  fru'ts  the  package  known  to 
the  Chicago  msrket  as  a  third  of  a  bushel  box  may  also  b«  used  ;  and  provided  fur- 
ther, that  this  >ec:tion  shall  rot  apply  to  dry,  preserved,  or  pickled  fruits  or  berries, 
or  to  the  sale  of  fruits  retailed  at  a  fixed  price  per  piece  or  number. 

SEC.  2.  All  fruits  and  berries,  fresh  or  dried,  sold  or  offered  for  sale  in  the  city 
of  Chicago  in  packages  shall  be  substantially  of  equal  goodness  in  every  part  of  the 
package;  any  package  of  fruit  packed  so  as  to  be  in  violation  of  this  section  shall  be 
subject  to  seizure  and  condemnation  by  the  health  officers  of  the  city  as  deleterious 
to  public  health. 

SEC.  3.  Any  person  who  shall  sell  or  offer  for  sale  by  the  package  within  the 
city  of  Chicago  any  fruit  or  berries  in  packages  not  of  the  size  and  description  re- 
quired by  the  first  section  of  this  ordinance,  or  who  shall  sell  or  offer  tor  sale  any 
fruit  or  berries  in  packages  the  contents  of  which  are  not  substantially  of  equal  goodness 
throughouc  the  package,  contrary  to  the  second  section  of  this  ordinance,  shall,  upon 
conviction,  be  fined  not  Ies3  than  $5  nor  more  than  $25  for  every  such  violation. 

SEC.  4.  The  ordinance  fntitled  "An  ordinance  to  regulate  the  selling  of  fruit?, 
berries,  etc.,"  passed  May  21,  1877,  approved  May  24,  1877,  is  hereby  repealed. 

SEC.  5.    This  ordinance  shall  be  in  force  from  and  after  its  passage. 

It  is  earnestly  hoped  that  country  growers  and  shippers  will  cheerfully 
accept  the  situation,  and  in  buying  their  berry  baskets  will  take  care  that 
they  are  of  full  quart  capacity,  and  their  peach  baskets  full  pecks.  Any 
other  course  must  result  in  great  annoyance  to  the  trade,  and  loss  to  the 
shipper  as  well.  The  state  of  public  feeling,  and  the  attitude  of  the  city 
authorities,  is  such  that  the  quart  box  and  peck  basket  will  be  the  meas- 
ure of  value,  and  boxes  and  baskets  not  up  to  this*  standard  will  be  dis- 
criminated against,  and  will  only  be  salable  at  much  lower  prices  than 
the  full  measure.  Hence  it  is  for  the  interest  of  every  grower  to  take 
immediate  steps  to  fully  comply  with  the  law.  There  is  no  doubt  that 
every  shipper  will  receive  as  much  for  his  crop  under  the  new  system  as 
he  did  under  the  old." 

By  order  of  the  Directors. 

JOHN  E.  COWLES,  Secretary. 


126  LAWS  OF  TRADE. 

Game  Law  of  Illinois. 


SECTION  1.  Be  it  enacted  by  the  people  of  the  State  of  Illinois,  repre- 
sented in  the  General  Assembly:  That  it  shall  be  unlawful  for  any  per- 
son or  persons  to  hunt  or  pursue,  kill  or  trap,  net  or  snare,  or  attempt  to 
kill,  trap,  net  or  snare  or  otherwise  destroy  any  wild  buck,  doe  or  fawn, 
wild  turkey,  prairie  hen  or  chicken,  ruffed  grouse  (commonly  called  par- 
tridge or  pheasant),  between  the  first  day  of  January  and  the  fifteenth  day 
of  August  in  each  and  every  year;  or  any  quail  between  the  first  day  of  Jan- 
uary and  the  first  day  of  October  in  each  and  every  year;  or  any  woodcock 
between  the  first  day  of  January  and  the  first  day  of  July  of  each  and  every 
year;  or  any  wild  goose,  duck,  Wilson  snipe,  brant,  or  other  water-fowl  be- 
tween the  fifteenth  day  of  April  and  the  fifteenth  day  of  August  in  each  ?»nd 
every  year;  and  every  p.erson  so  offending  shall,  for  each  and  every  of- 
fense, be  deemed  guilty  of  a  misdemeanor,  and  on  conviction  shall  be 
fined  in  any  sum  not  less  than  ten  dollars,  nor  more  than  twenty-five  dol- 
lars and  costs  of  suit,  and  shall  stand  committed  to  the  county  jail  until 
said  fine  is  paid;  provided  that  such  imprisonment  shall  not  exceed  ten 
days. 

Sections  2,  3,  4  and  5  not  of  special  interest  to  merchants. 

SEC.  6.  No  person  or  persons  shall  sell  or  expose  for  sale,  or  have 
in  his  or  their  possession  for  the  purpose  of  selling  or  exposing  for  sale, 
any  of  the  animals,  wild  fowl  or  birds  meutioned  in  Section  1  of  this  act, 
after  the  expiration  of  thirty  days  next  succeeding  the  first  day  of  the 
period  in  which  it  shall  be  unlawful  to  kill,  trap,  or  ensnare  such  animals, 
•wild  fowl  or  birds,  and  any  person  so  offending  shall,  on  conviction,  be 
fined  and  dealt  with  as  specified  in  Section  1  of  this  act. 

SEC.  7.  The  provisions  of  this  act  shall  not  be  construed  as  appli- 
cable to  any  Express  Company  or  common  carrier  into  whose  possession 
any  of  the  animals,  wild  fowl  or  birds  herein  mentioned  shall  come  in  the 
regular  course  of  their  business,  for  transportation,  whilst  they  are  in 
transit  through  this  State  from  any  place  without  this  State  where  the 
killing  of  such  animals,  wild  fowl  or  birds  shall  be  lawful.  But,  notwith- 
standing, the  having  or  being  in  possession  of  any  such  animals,  wild 
fowl  or  birds  as  are  mentioned  in  Section  1,  upon  any  of  the  days  upon 
which  the  killing,  entrapping,  ensnaring,  netting,  buying,  selling1,  or 
having  in  possession  any  such  animals,  wild  fowl  or  birds,  shall  be  un- 
lawful by  the  provisions  of  this  act,  shall  be  deemed  and  taken  as  "  prima 
facie  "  evidence  that  the  same  was  ensnared,  trapped,  netted  or  killed  in 
violation  of  this  act. 


PRODUCE  COMMISSION  BUSINESS.  127 


Instructions  for  Packing  Butter. 


We  -wish  to  impress  upon  the  minds  of  Western  dairy-men  and 
makers  of  butter  the  necessity  of  paying  strict  attention  to  this  great  in- 
terest, which  |is  yearly  growing  in  magnitude,  if  they  wish  to  compete 
with  other  sections.  The  packing  and  package  used  are  almost  as  essen- 
tial points  as  making,  and  this  fact  should  be  remembered.  Of  course, 
all  packages  of  butter  are  not  alike,  and  cannot  all  be  sold  at  the  same 
price,  but  a  little  more  care  and  attention  paid  in  this  respect — packing 
— would  do  considerable  towards  bringing  about  more  uniformity  in 
prices.  Very  often  commission  merchants  receive  complaints  from  coun- 
try shippers,  stating  that  their  butter  was  as  good  as  their  neighbors', 
which  was  sold  as  choice,  and  probably  2@5c.  higher  than  theirs.  This 
may  be  so  in  their  estimation,  but  other  parties  may  differ;  their  neigh- 
bors' butter  may  have  been  put  up  in  more  desirable  packages — probably 
new  tubs — while  theirs  was  packed  in  jars  or  old  tubs.  Then,  again, 
their  butter  may  have  been  streaked — probably  only  the  least  trifle,  while 
their  friends'  may  have  been  straight  and  uniform  in  color — all  which 
would  naturally  tend  at  times  tc  make  a  wide  difference  in  price  and 
create  dissatisfaction.  Parties  should  be  careful  and  pack  butter  uniform 
in  color,  and  should  particularly  remember  the  fact  that  streaked  lots — 
no  matter  how  sweet  and  choice — cannot  be  brought  in  competition  with 
lots  running  uniform  in  color;  the  latter  always  commanding  a  much 
quicker  sale  at  a  fair  premium,  and  in  every  way  compensating  dealers 
for  their  extra  labor  and  care.  Another  fault  is  that  a  large  portion  of 
the  butter  during  hot  weather  turns  sour  and  rancid  very  suddenly  some- 
times before  being  received,  although  it  may  have  left  in  good  and  sweet 
condition  from  whence  it  was  sent.  This  fault  lies  in  the  power  of 
makers  to  remedy  to  some  extent.  For  instance,  the  cream  may  have 
stood  too  long,  or  not  worked  sufficiently  to  take  out  all  the  buttermilk, 
while  another  fault  would  be  in  not  salting  properly.  These  minor 
points,  although  but  trifling  at  first,  are  more  noticeable  after  they  have 
gone  through  first  hands  and  finally  reach  other  markets.  The  packing 
and  packages  used  are,  however,  of  no  secondary  account  in  the  matter 
of  realizing  the  best  market  prices,  and  during  hot  weather  particularly 
should  shippers  be  especially  careful  in  regard  to  packages.  Jars  and 
pails  should  be  avoided  as  much  as  possible,  the  former  costing  more 


128  LAWS  OF  TRADE. 

freight,  besides  being  a  package  not  easily  handled.  In  handling  at  the 
stations  and  express  offices,  and  even  in  forwarding,  jars  and  pails  are 
often  placed  on  top  of  each  other,  and  as  there  are  no  covers  for  protec- 
tion, the  quality  is  materially  damaged  by  defacement,  and  the  price  is 
considerably  lessened.  Tubs  and  firkins  should  be  used  exclusively,  but 
in  tubs  some  discrimination  is  made.  The  New  York  ash  tub  is  taken  in 
preference  to  others  on  account  of  its  neater  appearance,  though  some 
parties  use  home-made  tubs,  which  they  claim  answers  their  purpose. 
Another  reason  why  these  tubs  are  becoming  more  in  favor  on  the  part 
of  dealers  is  the  fact  that  they  sell  more  readily  to  shippers,  and  parties 
can  also  more  readily  agree  on  tare  if  a  certain  make  and  tub  is  used  to 
which  they  are  accustomed.  Therefore  tubs  and  firkins  are  recommended 
10  be  the  most  desirable,  and  in  the  end  the  most  economical  packages 
used.  In  packing  parties  should  be  careful  to  soak  their  packages  well 
before  using.  In  making  always  use  the  best  salt — Higgins'  Factory- 
filled  Dairy  is  most  generally  used.  Parties  should  be  careful  to  pack 
their  butter  solid,  completely  filling  the  packages,  and  spread  a  piece  of 
clean,  new  bleached  cotton  cioth  over  it,  dipped  in  brine,  neatly  tucked 
in  at  the  edges,  so  when  removed  it  will  not  damage  appearance.  An- 
other fact  which  we  wish  to  call  the  attention  of  farmers  and  makers  of 
butter  to  is  that  they  should  buy  their  own  packages  and  pack  their  own 
butter  in  original  packages,  so  as  to  do  away  with  this  country  second - 
handed  repacking  business,  which  causes  so  much  streaked  butter. 


Advice  to  Shippers  of  Butter. 


Commission  merchants  complain  that  considerable  "  made-over " 
butter  is  being  consigned  to  this  market,  the  bulk  of  which  they  find 
very  difficult  to  sell,  and  in  most  cases  can  only  be  disposed  of  at  a  loss 
to  the  shipper.  This  is  not,  of  course,  applicable  to  all  "  made-over " 
butter  that  is  received  from  the  country,  but  more  particularly  that  from 
country  store-keepers,  who  think  that  by  a  certain  patent  process,  and 
the  use  of  patent  machinery  and  by  coloring,  they  can  turn  common  and 
fair  grades  of  butter  into  A  No.  1  quality.  To  those  who  are  not  versed 
in  the  business  and  do  not  give  it  their  sole  attention,  let  this  bit  of  ad- 
vice suffice — "  let  well  enough  alone  " — for  by  endeavoring  to  re-work  a 


PRODUCE  COMMISSION    BUSINESS.  129 

fair  lot  of  solid  butter  for  the  purpose  of  improving  the  qxiality  by  the 
aid  of  machinery  and  coloring,  they  generally  make  a  failure  of  it,  and 
when  it  is  sold  here  will  only  command  low-grade  prices.  A  good  qual- 
ity of  solid  butter,  no  matter  if  not  particularly  straight  and  uniform  in. 
color,  can,  if  sweet,  be  sold  to  the  local  retail  trade;  but  after  going 
through  this  patent  process  and  coloring  up,  it  is  generally  refused  by 
this  class  of  buyers,  while  shippers  and  re-packers  refuse  to  buy.  except- 
ing at  low-grade  prices,  as  it  is  not  worked  to  their  satisfaction,  and  they 
prefer  to  do  their  own  re-packing.  A  practice  prevails  in  the  country  of 
re-packing  common  and  good  qualities;  country  dealers  thinking  that  by 
working  the  two  grades  into  one  they  can  sell  the  entire  lot  for  a  good 
price.  In  this  they  are  mistaken,  as  dealers  here  know  the  difference 
between  a  good  and  a  poor  quality.  Hence  the  best  policy  is  to  ship 
butter  to  this  market  just  as  it  is  received  at  country  points,  and  in  most 
cases  the  result  will  bo  more  satisfactory  to  both  the  shipper  and  the 
commission  merchant.  It  is  not  the  fault  of  the  merchant  here  if  he 
cannot  sell  this  re-worked  stock  at  prices  to  let  out  the  country  shipper, 
although  countrymen  generally  lay  the  blame  to  them,  and  considerable 
dissatisfaction  naturally  results  from  this  source. 


Roll  Butter. 


Care  should  be  taken  in  packing  and  shipping;  country  shippers 
and  dealers  are  in  the  practice  of  sending  roll  butter  to  this  market  in 
every  conceivable  package,  including  barrels,  pine  boxes,  etc.  The 
above-named  packages  should  be  entirely  avoided,  as  pine  will  have  a 
tendency  to  affect  and  flavor  the  butter,  while  barrels  are  too  large,  and 
not  easily  handled,  besides  the  weight  crushes  the  rolls.  New  tubs  or 
hardwood  boxes  are  the  most  desirable,  while  half  barrels  or  kegs  will 
do  equally  as  well,  and  these  only  should  be  used.  Care  should  also  be 
taken  before  putting  the  butter  in  packages,  that  all  the  sides  and  ends 
of  the  package  be  lined  with  new,  white  muslin,  thus  keeping  the  butter 
from  defacement  by  touching  the  wood.  Another  bad  practice  is  in  put- 
ting the  butter  up  in  paper;  this  should  not  be  done,  as  the  paper  sticks 
to  the  butter  and  damages  the  appearance.  Each  roll  should  be  separ- 
ately placed  in  a  piece  of  new  muslin  cloth,  washed  in  warm  water  to 


130  LAWS  OF  TRADE. 

take  out  the  starch,  and  thoroughly  wet  in  good  brine.  The  rolls  should 
also  be  of  uniform  color,  not  packing  the  light  and  fresh  made  with  other 
that  has  been  colored. 


Tare   on  Butter  Packages. 


Some  dissatisfaction  is  expressed  by  parties  in  the  country  in  regard 
to  the  tare  allowed  by  commission  merchants  on  butter  packages.  This 
fault  of  improper  tare,  if  there  is  any,  is  not  the  fault  of  the  merchant 
here,  but  that  of  the  country  dealers  in  not  allowing  for  sufficient  soak- 
age.  The  tub  most  in  use  at  present  is  the  ash  tub,  which  parties  allow 
to  soak,  say  from  four  to  five  days  in  brine,  but  after  the  butter  has  been 
packed  these  packages  absorb  sufficient  to  make  the  packages  weigh 
fully  one-half  to  one  pound  more.  The  lightest  ash  tubs,  containing  60 
to  65  pounds  ol  butter,  weigh,  when  dry,  about  7£  pounds,  and  when 
thoroughly  soaked  from  9£  to  10  pounds,  while  the  heavy  ash  tubs,  which 
contain  60  to  65  pounds  of  butter  when  dry,  weigh  about  9£  to  10 
pounds,  and  when  soaked  12  pounds. 

Country  dealers  also  complain  that  their  gross  weight  does  not  hold 
out  full,  but  that  there  is  more  or  less  shrinkage.  This  the  country  deal- 
ers can  remedy  by  not  putting  so  large  a  quantity  of  salt  and  brine  on 
their  butter.  It  is  impossible  for  commission  merchants  to  sell  salt  or 
brine  for  butter,  and  in  nine  cases  out  ot  ten  the  salt  has  to  be  taken  off 
and  the  biine  let  out  before  a  sale  can  be  made.  A  little  caution  in  this 
respect  will  bring  about  a  better  understanding  between  country  shippers 
and  commission  merchants. 


Instructions  to  Shippers. 


Shippers  of  produce  would  do  well  to  carefully  observe  the  follow- 


PRODUCE  COMMISSION  BUSINESS.  131 

ing  instructions,  which  will  be  advantageous  to  both  the  shipper  and 
commission  merchant. 

All  articles  should  be  packed  in  clean  packages,  and  care  should  be 
taken  to  pack  articles  as  neatly  as  possible. 

Articles  which  are  sold  by  weight  should  have  the  gross  and  tare 
marked  plainly  on  each  package,  and  those  sold  by  count  should  have 
the  number. 

In  shipping  dressed  poultry  and  game,  mark  each  package  with  the 
various  kinds  and  amount  contained  in  each  package. 

The  address  of  the  commission  merchant  should  be  marked  plainly 
with  marking-ink  on  each  package,  also  from  whom  consigned;  nail  or 
tack  an  invoice  on  each  package,  and  also  send  an  invoice  by  mail. 

Country  shippers  should  also  make  it  their  aim  to  send  none  but 
choice  articles  to  this  market,  if  they  wish  to  obtain  ready  sales.  Poor 
lots,  not  fit  for  use,  and  such  which  country  shippers  would  not  use  them- 
selves— they  being  good  judges — should  not  be  sent  here  to  trouble  and 
pester  our  merchants. 


Game  for  Shipment. 


Pack  solid  without  gutting  in  layers,  in  boxes  or  barrels,  smoothing 
each  bird  down  nicely;  use  neat  packages;  put  your  count  on  each  bar- 
rel or  box. 

Woodcock  and  snipe  should  never  be  gutted,  and  woodcock  need 
heavy  icing. 

Bear  should  be  shipped  whole  carcass,  and  gutted. 

Deer  in  carcass,  always  gutted,  and  leave  horns  on;  but  when 
skinned,  hind  quarters  or  saddle,  wrap  up  in  clean  white  cloth,  or  skin 
out  the  fore  quarters  and  fold  back  the  skin  over  the  hind  quarters  and 
tie  up. 

Antelope  only  pays  to  ship  hind  quarters,  wrappi-d  up  in  whole  hide. 

Elk  and  buffalo,  only  ship  hams  cut  from  the  calf;  the  but  and  heavy 
cow  are  not  worth  shipping;  wrap  up  in  clean  white  cloth.  Rabbits, 
never  gut  or  skin. 


132  LAWS  OF  TRADE. 

Mountain  sheep,  ship  whole  carcass  gutted,  not  skinned,  leaving 
horns  on. 

Wild  pigeons,  dressed  should  not  be  gutted,  but  if  crop  is  full 
should  be  pulled  off  with  the  head  and  neck,  and  the  wings  chopped  off 
close,  or  leave  one  joint.  Feathered  wild  pigeons,  pull  the  tail  feathers 
and  chop  off  the  wings;  in  warm  or  doubtful  weather  both  must  be  well 
iced  between  each  or  alternate  layer  of  birds;  use  tight  packages. 

Live  pigeons  should  have  a  supply  of  corn,  well  soaked,  placed  in 
their  coops,  if  coming  any  distance,  and  coops  should  have  two  bars  on 
top  of  each  coop  lengthwise,  to  keep  them,  when  piled  on  top  of  one  an- 
other, at  least  three  inches  apart,  to  prevent  suffocation;  not  over  fifty 
or  sixty  birds  in  a  coop. 


How  to  Kill  and  Ship  Poultry. 


Poultry  should  never  be  killed  by  the  wringing  of  the  neck,  but 
should  be  killed  by  bleeding,  by  means  of  opening  of  the  veins,  or  by 
cutting  off  the  head,  so  as  to  let  them  bleed  freely.  If  the  latter  be 
done,  care  should  taken  and  draw  the  skin  over  the  neck  and  tie  secure 
before  shipping.  Deface  the  neck  as  little  as  possible,  as  the  looks  will 
materially  aid  in  bringing  outside  prices.  Poultry  should  be  picked  dry, 
which  can  easily  be  done  by  plucking  before  the  bodies  are  cold,  which 
always  give  poultry  a  nice  appearance.  However,  when  scalded,  the 
water  should  be  as  near  boiling  as  possible,  and  yet  not  really  boil.  The 
poultry  should  be  dipped,  so  that  the  water  will  have  proper  effect  on  the 
skin,  and  penetrate  the  feathers.  The  feathers  should  be  picked  imme- 
diately, but  care  should  be  taken  and  not  break  the  skin.  Do  not  re- 
move the  entrails.  Poultry,  before  being  killed,  should  be  kept  twenty- 
four  hours  without  food;  full  crops  injure  the  appearance,  and  are  liable 
to  sour,  by  which  the  sale  would  be  greatly  injured.  Before  packing  it 
should  get  thoroughly  dry  and  cold,  but  not  frozen.  Moderate-sized 
boxes  should  be  used,  but  avoid  very  large  packages  as  much  as  possible, 
as  there  is  considerable  trouble  in  handling,  besides  being  more  difficult 
to  sell.  In  packing  use  clean  boxes,  and  line  the  ends  and  sides  with 


PRODUCE  COMMISSION  BUSINESS.  133 

paper.     Always  pack  as  closely  as  possible,  and  fill  the  boxes  well,  SP 
there  will  be  no  chance  for  the  poultry  to  move  about. 


To  Shippers  of  Cheese. 


Factorymen  and  shippers  of  cheese  should  be  more  particular  in  re- 
gard to  the  size  of  the  boxes  in  which  they  ship  cheese.  The  boxes 
should  not  be  higher  than  the  actual  height  of  the  cheese,  as  the  heat 
during  warm  weather  causes  them  to  puff  and  swell  in  the  vacant  space, 
which  naturally  damages  the  sale. 


To  Shippers  of  Vegetables. 


Country  shippers  have  found  fault  with  the  returns  commission  mer- 
chants make  of  green  peas  and  other  green  vegetables  sold  by  the  meas- 
ure, they  claiming  that  sales  for  full  amounts  are  not  returned.  Country 
shippers  should  bear  in  mind  that  in  transportation  vegetables  become 
more  or  less  heated  and  packed,  and'lots  invariably  run  short  when  sold. 


Instructions  for  Preserving  Eggs. 


To  make  pickle,  use  stone  lime,  fine  salt,  and  water  in  the  following 
proportions  :  1  bushel  of  lime,  8  quarts  of  salt,  25  tin-quart  pails  of 
water. 


134  LAWS  OF  TRADE!. 

The  lime  must  be  of  the  finest  quality,  free  from  sand  and  dirt — 
lime  that  will  slack  white,  fine  an,d  clean.  Have  the  salt  clean  and  the 
water  pure  and  sweet,  free  from  all  vegetable  or  decomposed  matter. 

Slack  the  lime  with  a  portion  of  the  water,  then  add  the  balance  of 
the  water  and  the  salt.  Stir  well,  three  or  four  times,  at  intervals,  and 
then  let  it  stand  until  well  settled  and  cold.  Either  dip  or  draw  off  the 
clear  pickle  into  the  cask  or  vat,  in  which  it  is  intended  to  preserve  the 
eggs.  When  the  cask  or  vat  is  filled  to  a  depth  of  fifteen  or  eigthteen 
inches,  begin  to  put  in  the  eggs,  and  when  they  lay,  say  about  one  foot 
deep,  spread  around  over  them  some  pickle  that  is  a  little  milky  in  ap- 
pearance, made  so  by  stirring  up  some  of  the  very  light  lime,  particles  that 
settle  last,  and  continue  doing  this,  as  each  foot  of  eggs  is  added.  The 
object  of  this,  is  to  have  the  fine  lime  particles  drawn  into  the  pores  of  the 
shells,  as  they  will  be  by  a  kind  of  inductive  process  and  thereby  com- 
pletely seal  the  eggs.  Care  should  be  taken  not  to  get  too  much  of  the 
lime  in,  that  is,  not  enough  to  settle  and  stick  to  the  shell  of  the  eggs  and 
render  them  difficult  to  clean,  when  taken  out.  I  believe  that  the  chief 
cause  of  thin,  watery  whites  in  limed  eggs;  is  that  they  are  not  properly 
sealed,  in  the  manner  described  ;  of  course  another  cause  is,  the  putting 
into  the  pickle,  old  stale  eggs,  that  have  thin,  weak  whites.  When  the 
eggs  are  within  about  four  inches  of  the  top  of  the  cask  or  vat,  cover 
them  with  factory  cloth  and  spread  on  two  or  three  inches  of  the  lime 
that  settles  in  making  the  pickle,  and  it  is  of  the  greatest  importance 
that  the  pickle  is  kept  continually  up  over  this  lime.  A  tin  basin,  hold- 
ing about  six  to  eight  dozen  eggs,  punched  quite  full  of  inch  holes,  edge 
muffled  with  leather  and  a  suitable  handle,  about  three  feet  long,  attached, 
will  be  found  convenient  for  putting  the  eggs  into  the  pickle.  Fill  the 
basin  with  eggs,  put  both  under  the  pickle  and  turn  the  eggs  out  ;  they 
will  go  to  the  bottom  without  breaking. 

When  the  time  comes  to  market  the  eggs,  they  must  be  taken  out 
of  the  pickle,  cleaned,  dried  and  packed.  To  clean  them,  secure  half  of 
a  molasses  hogshead,  or  something  like  it,  filling  the  same  about  half  full 
of  water.  Have  a  sufficient  number  of  crates  of  the  right  size,  to  hold 
20  or  25  dozen  eggs,  made  of  laths  or  other  slats  placed  about  three  quar- 
ters of  an  inch  apart.  Sink  one  of  these  crates  in  the  half  hogshead, 
take  the  basin  used  to  put  the  eggs  into  the  pickle,  dip  ihe  eggs  out  and 
turn  them  into  this  crate.  When  full,  rinse  the  eggs  by  raising  it  up  and 
down  in  the  water,  and  if  necessary  to  properly  clean  them,  set  the  crate 
up  and  douse  water  over  the  eggs,  then  if  any  eggs  are  found  when 


PRODUCE  COMMISSION  BUSINESS.  135 

packing  that  the  lime  has  not  been  fully  removed  from,  they  should  be 
laid  out  and  all  the  lime  cleaned  off  before  packing.  When  the  eggs  are 
carefully  washed,  as  before  described,  they  can  be  set  up  or  out  in  a  suit- 
able place  to  dry — in  the  crates.  They  should  dry  quickly  and  be  packed 
as  soon  as  dry.  In  packing,  the  same  rules  should  be  observed  as  in 
packing  fresh  eggs.  Vats  built  in  a  cellar,  around  the  walls  with  about 
half  their  depth  below  the  cellar  surface,  about  four  or  five  feet  deep  six 
feet  long  and  four  feet  wide,  are  usually  considered  best  for  preserving 
eggs  in,  although  many  use  and  prefer  large  tubs  made  of  wood. 

The  place  in  which  the  vats  are  built  or  the  tubs  kept  should  be  clean 
and  sweet,  free  from  all  bad  odors,  and  where  a  steady  low  temperature 
can  be  maintained  ;  the  lower  the  better,  that  is  down  to  any  point  above 
freezing.  Besides  the  foregoing,  other  methods  for  preserving  eggs  have 
'  been  devised,  such  as  varnishing,  greasing,  oiling  and  rolling  in  flour,  but 
these  methods  will  only  answer  in  a  small  way,  for  an  individual's  private 
use,  it  being  nearly  or  quite  as  much  as  the  eggs  are  worth  to  put  them 
in  merchantable  shape  ;  in  fact,  it  is  nearly  impossible  to  do  so,  as  the 
shells  will  never  look  uniformly  clean.  Several  processes  have  been  pat- 
ented and  sold  to  a  considorable  extent,  but  the  old  liming  process  un- 
doubtedly stands  ahead  up  to  the  present  time. 


Instructions  for  Packing  Eggs. 


Use  none  but  new  packages,  and  these  of  uniform  size  and  appear- 
ance, containing  the  same  number  of  dozen,  the  same  number  of  layers^ 
and  the  same  number  of  eggs  in  each  corresponding  layer  ;  to  secure 
bright,  dry,  clean  straw,  free  from  must,  a  season  in  advance  ;  to  have  it 
cut  with  a  first-class  cutting  machine  that  is  kept  perfectly  sharp,  so  that 
the  packing  will  be  crisp  and  elastic,  made  so  by  cutting  the  straw  clean 
off  without  mashing,  as  is  the  case  when  cut  in  a  poor  machine  with  dull 
knives.  The  importance  of  good  packing  would  be  better  appreciated 
by  shippers,  if  they  could  see  their  consignees  selling  the  eggs.  When 
the  head  is  taken  out  of  a  barrel,  properly  packed  with  crisp  elastic  straw 
the  head  springs  up,  and  the  eggs  show  up  in  good  condition.  But  the 


136  LAWS  OF  TRADE. 

removal  of  the  head  from  a  barrel  packed  with  musty,  mashed  straw, 
scares  the  customers;  then  if  the  packing  has  sagged  down,  having 
room  for  the  eggs  to  shift,  and  the  top  layer  from  careless  heading  has  a 
number  of  broken  eggs  that  have  matted  the  straw,  the  customer  thinks 
the  whole  barrel  is  in  the  same  condition,  and  not  only  refuses  to  buy 
that  barrel,  but  Jooks  with  suspicion  on  that  brand. 

The  eggs  in  each  barrel  should  be  of  uniform  quality  as  far  as  fresh- 
ness and  cleanliness  are  concerned.  If  a  shipper  has  stale  or  dirty  eggs 
and  wants  to  ship  them  he  should  put  them  np  in  separate  packages  with 
a  distinct  mark.  The  regular  brand  should  be  uniform  in  every  respect 
in  order  to  secure  and  maintain  a  reputation  ;  r.ll  doubtful  eggs  should 
be  sorted  out  and  marked  with  the  outside  brand. 

Dealers  should  dnploy  none  but  good,  careful  packers,  those  who 
take  a  pride  in  doing  their  wcik  well.  The  one  who  does  the  heading, 
should  be  a  man  with  good  judgment,  a  careful  painstaking  ma/j,  who 
will  do  his  work  without  breaking  the  eggs  on  the  top  layer,  and  at  the 
same  time  secure  them  against  shifting.  Too  much  care  cannot  be  taken 
in.  this  part  of  the  work,  because  nothing  injures  a  brand  more  than 
broken  eggs  on  the  top  layer. 


i\r^ 


PRODUCE  COMMISSION   BUSINESS.  137 


What  Constitutes  a  Car-Load, 


Salt,  brls            .......  70 

Lime,  brls  70 

Flour,  brls  90 

"     Sacks  200 

Whisky,  brls  60 

Softwood,  cords  6 

Cattle,  head  20 

Hogs,  head                         -    x  60 

Sheep  100 

Apples,  bu  360 

Sweet  Potatoes,  bu  360 

Split  boards,  ft  9,000 

Flooring,  ft  13,000 

Siding  17,000 

Shingles  40,000 

Wheat,  bu  340 

Corn,     "  300 

Oats,      "  680 

Barley, "  400 

Flax  seed,  bu  360 

Irish  Potatoes,  bu  430 

Bran,  bu            -------  1,000 


138  LAWS  OF  TRADE. 


Option  Com. 

Car  Lots.  Car  Lots.          From  Store. 

Wheat £  ct.  per  bu.         1  ot.  per  bu. 

Corn "         "                "         " 

Oats "         "                "         " 

Rye "         "                "         " 

Barley "         u                "         " 

Hops 2£  per  ct.               5  per  ct. 

Seeds "         "                  "      " 

Broom  Corn "         "                    "      " 

Cured  Meats 1  per  ct.          1  per  ct.                    "      " 

Beef "      " 

Pork 1  per  ct.          1  per  ct.                    "      " 

Dressed  Hogs £     «     "            1|  "     "                   3  per  ct. 

Live  Hogs $6  per  car 

Cattle 50c.  per  head 

Sheep $6  per  car 

Dressed  Sheep, 5  per  ot. 

Butter 2£  per  ct.                  "      " 

Lard .2^  per  ct.          1     per  ct.  "      " 

Tallow 2|  per  ct.                   "      " 

Hides "         «                     "      " 

Wool "         "                    "      " 

Lumber "         " 

Shingles "         " 

Lath "         " 

Beeswax 5  per  ct. 

Beans 2£  per  ct.                   "      " 

Green  Fruits 5         "                      10  per  ct- 

Dried  Fruits 2£      «                       5      " 

Foreign  Fruits 5        "                     10      " 

Cheese 2^      "                      5      "  ' 

Eggs "       "                      5      " 


PRODUCE  COMMISSION  BUSINESS. 


139 


Game , 

Hay  ati  d  Straw . . 

Potatoes 

Potatoes,   Sweet. 
Poultry,    Live 
Poultry,   Dressed . 

Vegetables 

Veal 

Furs 

Feathers 

Cider  

Dried   Peas 

Honey 

Nuts,    Domestic.. 
Nuts,  Foreign 
Fish  . 


$5  per  car 
5  per  ct. 


5  per  ct. 


5  to  10  " 

10  per  ct. 

10  " 

5  « 

5  " 

10  " 

5  " 

5  " 

5  " 

10  " 

5  " 

5  " 

5  " 

5  " 

5  " 


140  LAWS  OF  TRADE. 


SHIPPING  PERISHABLE  MERCHANDISE, 


BY    THE 

Tiffany  Summer  and    Winter  Cars. 


In  this  era  of  wonderful  and  eminently  practical  inventions  and  dis- 
coveries in  the  domain  of  science,  there  is  nothing  in  which  more  marked 
advancement  has  been  made  than  in  the  direction  of  providing  means  for 
the  transportation  in  a  fresh,  sound  condition  of  the  perishable  products 
of  the  sea,  the  soil,  the  dairy,  and  the  packing  house.  By  the  invention 
and  perfection  of  refrigerator  cars,  refrigerator  storehouses,  and  refriger- 
ator steamers,  the  commerce  of  the  world  has  been  facilitated  and  pro- 
moted beyond  anything  like  approximate  computation,  and  what  a  few 
years  ago  was  an  absolute  impossibility  has  thereby  been  rendered  easy 
of  accomplishment. 

We  can  to-day  receive  luscious  fruits,  berries,  and  vegetables  of 
California,  Florida,  Texas  and  other  remote  sections  in  as  fresh  condition 
as  when  they  were  gathered.  During  the  hottest  weather  of  summer 
Wisconsin  creamery  butter  is  laid  down  in  the  New  York  market  in  bet- 
ter condition  than  that  of  the  Westchester  dairyman  living  ten  miles 
from  the  city.  In  the  shops  of  England,  France,  and  Germany,  Amer- 
ican dressed  beef  is  sold  as  fresh  and  sweet  as  where  it  was  slaughtered 
— yes,  in  even  improved  condition,  on  account  of  the  age  it  has  gained 
in  transit.  By  reason  of  these  modern  transportation  and  preserving 
facilities,  tropical  and  semi-tropical  fruits,  which  would  otherwise  not 
pay  for  the  labor  employed  in  gathering  them,  are  freighted  thousands  of 
miles  to  a  ready  and  remunerative  market.  By  the  same  means  dairy 
products  are  carried  to  points  where  they  command  double  or  treble  the 
price  which  could  be  realized  where  they  were  produced.  The  same 
with  reference  to  fresh  meat,  poultry,  eggs,  fish,  and  other  perishable 
property.  Thus  the  surplus  products  of  one  section  are  made  to  supply 
the  wants  of  another  and  distant  region,  to  the  encouragement  and  pro- 
motion of  local  industries  and  the  enrichment  of  the  people.  That  these 
commercial  conveniences  for  the  exchange  and  marketing  of  the  respect- 


WINTER  AND  SUMMER  CARS.  141 

ive  products  of  different  countries  and  climes  are  the  means  of  saving 
millions  of  dollars  annually  is  unquestionable. 

Desiring  to  give  information  with  regard  to  this  important  and  inter- 
esting matter  to  the  producer  and  shipper  of  such  commodities,  we  have 
obtained  the  following  information  from  Mr.  Charles  F.  Pierce,  Manager 
of  the  Tiffany  Refrigerator  Car  Company,  at  his  office,  74  Washington 
street,  to  wit :  That  the  Tiffiny  Summer  and  Winter  Cars  and  Chill 
Rooms  had  proved  a  perfect  success,  and  the  numerous  testimonials  in 
his  possession  from  railroad  corporations,  commission  firms,  shippers  and 
receivers  fully  corroborate  his  statements.  These  cars  and  storehouses 
are  constructed  on  strictly  scientific  principles,  and  the  results  of  their 
thorough  test  and  use  during  the  two  years  in  which  they  have  been 
operated  are  of  the  most  satisfactory  character.  The  outside  jacket  se- 
cures perfect  insulation,  protecting  the  contents  from  all  atmospheric 
conditions  and  changes,  whether  of  heat  or  cold,  thus  insuring  the  great 
•desideratum — an  equable  temperature  in  all  latitudes.  This  important 
advantage  has  been  demonstrated  in  a  multitude  of  cases,  as,  for  instance, 
in  the  transportation,  in  summer,  of  dressed  beef  from  Denver  to  Phila- 
delphia, 2,400  miles,  through  four  extreme  climatic  changes,  the  trip  oc- 
cupying 14  days,  and  the  beef  reaching  its  destination  in  perfect  order. 
A  Philadelphia  commission  firm  report  receipts  of  California  fruits 
shipped  in  Tiffany  cars  as  opening  up  "in  splendid  order,"  and  express 
the  hope  that  all  fruit  shipped  to  them  will  come  in  these  cars,  "  as  it  has 
always  been  a  great  difficulty  to  have  the  fruit  arrive  in  good  order." 

A  prominent  fruit  firm  in  this  city  say,  the  Tiffany  car  "  has  proved 
itself  a  success  for  the  transportation  of  California  fruit  to  Chicago  and 
the  Eastern  cities.  With  outside  temperature  of  110  degrees  in  the 
shade,  the  car  maintained  an  even  temperature,  wich  small  consumption 
of  ice." 

This  Company  now  have  95  cars  running  in  all  parts  of  the  country, 
and  7  in  Europe,  and  will  add  to  the  number  as  rapidly  as  possible.  They 
are  employed  on  many  of  the  principal  railway  lines,  and  bid  fair  to 
supersede  all  other  cars  for  the  carriage  of  perishable  merchandise. 

The  Atlantic  Coast  Line  has  adopted  the  Tiffany  transfer  car  for  the 
transportation  of  strawberries  and  early  vegetables  from  Charleston  to 
New  York,  having  met  with  signal  success  therewith  last  season.  These 
small  cars  measure  8  feet  in  length  by  7  feet  in  height,  and  four  of  them 
can  be  carried  on  an  ordinary  platform  car,  allowing  of  their  being  trans- 
ferred to  boats  or  vessels  with  the  utmost  facility.  The  Company  will 


142  LAWS  OF  TRADE. 

build  this  winter  for  the  same  Line  50  more  of  their  small  and  12  of  their 
large  cars.  On  the  opening  of  the  projected  steamship  line  between 
Galveston  and  Vera  Cruz,  it  is  proposed  to  employ  these  transfer  cars  for 
the  transportation  of  the  delicious  fruits  of  Mexico  to  Chicago,  which  can 
be  done  in  a  week's  time,  and  the  fruits  laid  down  here  without  the 
slightest  deterioration  in  freshness  or  flavor.  Our  people  can  then  in- 
dulge in  tropical  luxuries  in  midwinter,  at  prices  which  will  bring  them 
within  the  reach  of  all. 

The  Tiffany  cold  storage  rooms  have  been  erected  at  several  shipping 
points  in  Texas,  Florida,  and  other  parts  of  the  South, wherein  are  placed 
fruits,  etc.,  intended  for  Northern  markets  and  allowed  to  remain  until 
their  temperature  is  reduced  to  the  proper  degree  for  safe  shipment  in 
the  refrigerator  cars.  In  testimony  to  the  efficacy  of  this  system,  the 
officers  of  the  Pomological  Association  of  Texas  say  :  "  We  take  great 
pleasure  in  certifying  that  wd  have  carefully  examined  the  system  of  Cold 
Storage  and  Refrigeration  adopted  and  practiced  by  the  Tiffany  Refriger- 
ator Car  Company,  and  which  is  now  in  operation  at  their  Houston  Chill 
Rooms,  and  have  also  eaten  of  the  fruit  kept  in  said  house  for  a  week  and 
over,  and  are  fully  satisfied  that  all  perishable  fruits  and  vegetables  can 
be  preserved  and  marketed  in  good  condition  to  Northern  cities  when- 
ever the  system  ib  properly  applied."  By  this  means  the  mammoth  and 
luscious  strawberries  grown  in  that  State  can  be  placed  on  the  Chicago 
market  early  in  March  and  profitably  sold  at  25  cents  per  quart. 

Foreign  communities  having  become  fully  convinced  of  the  feasibil- 
ity of  importing  American  fresh  meats — a  trade,  by  the  way,  which  is 
assuming  gigantic  proportions — these  refrigerator  warehouses  have  been 
built  at  Paris  and  Vienna,  and  are  to  be  erected  in  Russia  and  other 
European  countries.  Thus  are  the  advantages  and  economies  of  refrig- 
eration, as  perfected  and  utilized  under  the  universally  approved  Tiffany 
system,  benefiting  incalculably  the  nations  of  the  world. 


DECISIONS  IN  ADMIRALTY. 


BY  ROBERT  RAY,  CHICAGO  BAR. 
COLLISION. 

Even  flagrant  fault  committed  by  one  of  two  vessels  approaching  each 
other  from  opposite  directions,  does  not  excuse  the  other  from  adopting 
every  proper  precaution  required  by  the  special  circumstances  of  the  case 
to  prevent  a  collision.  Damages  equally  divided  in  a  case  of  collision 
on  an  application  of  this  rule.  The  Maria  Martin,  12  Wai.  31. 

A  vessel  racing  in  order  to  enter  a  harbor  before  another,  and  pre- 
occupy a  loading  place,  condemned  for  a  collision  resulting.  The  Spray, 
12  Wai.  366. 

When  a  vessel  is  sailing  in  close  proximity  to  other  vessels,  the  fact 
that  her  hands  are  engaged  in  reefing  her  main  sail,  is  no  sufficient  ex- 
cuse for  failure  to  keep  a  lookout,  or  to  take  such  precautions  as  are 
needful  to  avoid  collisions.  Thorp  v.  Hammond,  12  Wai.  408. 

If  a  vessel  at  anchor  in  a  gale  could  avoid  a  collision  threatened  by 
another  vessel,  and  does  not  adopt  the  means  for  doing  so,  she  is  a 
participant  in  the  wrong,  and  must  divide  the  loss  with  the  other  vessel. 
The  Sapphire,  11  Wai.  164. 

A  schooner  meeting  a  steamer,  approaching  her  on  a  parallel  line, 
with  the  difference  of  half  a  point  in  the  courses  of  the  two,  held  a  col- 
lision case  upon  evidence  to  have  kept  on  her  course,  and  therein  to  have 
done  what  she  ought  to  have  done.  The  Fannie,  11  Wai.  238. 

A  steamer  approaching  a  sailing  vessel,  is  bound  to  keep  out  of  her 
way,  and  to  allow  her  a  free  and  unobstructed  passage.  Whatever  is 
necessary  for  this,  it  is  her  duty  to  do  and  to  avoid  whatever  obstructs  or  en- 
dangers the  sailing  vessel  in  her  course.  The  obligation  resting  on  the 
sailing  vessel  is  passive  rather  than  active,  the  duty  to  keep  on  her 
course.  If,  therefore,  the  sailing  vessel  does  not  change  her  course  so  as 
to  embarrass  a  steamer,  and  render  it  impossible  or  at  least  difficult  for 


144  LAWS  OF  TRADE. 

her  to  avoid  a  collision,  the  steamer  alone  is  answerable  for  the  damages 
of  a  collision  if  there  is  one.  The  Fannie,  11  Wai.  238. 

On  crowded  waters  and  powerful  vessels,  lookouts  are  bound  to 
sleepless  vigilance  and  indefatigable  care.  The  Adriratic,  13  Wai.  475. 

The  absence  of  a  proper  lookout  unimportant,  when  the  absence  of 
one  has  nothing  to  do  with  causing  the  disaster.  The  Fannie,  J 1  Wai.  238. 

A  steamer  crossing  another  so  as  to  involve  risk  of  collision  con- 
demned; 1st,  for  not  keeping  clear,  having  the  other  on  her  starboard; 
2d,  being  the  following  vessel.  The  Columbia,  10  Wai.  246. 

The  rule  of  navigation  which  requires  a  special  lookout,  does  not 
apply  to  a  case  where  the  absence  of  a  lookout  had  nothing  to  do  in 
causing  the  collision  or  loss.  The  Farragut.  10  Wai.  334. 

One  vessel  meeting  another  of  a  foreign  nation  on  the  high  seas,  is 
btfund  to  observe  towards  her  the  rules  of  navigation  prescribed  by  the 
municipal  laws  of  the  country  of  the  former.  The  Scotia,  3  Chicago 
Learal  News,  10. 

O  * 

Where  two  sailing  vessels  are  beating  in  the  same  direction,  the 
hindmost  vessel  is  bound  to  know  that  the  leading  vessel  must  come 
about  on  running  out  of  her  course,  and  the  time  and  place  when  and 
where  such  manceuver  must  take  place,  and  she  must  take  proper 
measures  to  permit  the  movement  without  coming  into  dangerous  prox- 
imity. The  Nellie  D.,  5  Bl.  C.  C.  245. 

Sailing  ships  are  "  meeting  end  on,"  within  the  meaning  of  the  llth 
article  of  the  Act  29th  April,  1864  (2  Bright  Dig,  428),  when  they  are 
approaching  each  other  from  opposite  directions,  or  on  such  parallel  lines 
as  involve  risk  of  collision  on  account  of  their  proximity,  and  when  they 
have  advanced  so  near  to  each  other  that  the  necessity  for  precaution  to 
prevent  such  a  disaster  begins.  The  Nichols,  7.  Wai.  656;  The  Dexter, 
23  Wai.  70. 

The  expression  "meeting  nearly  end  on,"  in  the  same. act,  includes 
cases  where  two  sailing  ships  are  approaching  from  nearly  opposite 
directions,  or  on  lines  of  approach  substantially  parallel,  and  so  near  to 
each  other  as  to  involve  risk  of  collision.  The  Nichols,  7  Wai.  656. 

A  sailing  vessel  discovering  the  lights  of  a  steamer  nearly  ahead  on 
a  dark  and  cloudy  night,  has  no  right  afterwards  to  change  her  course, 
on  the  idea  that  she  has  not  been  seen  by  the  steamer.  The  Scotia,  5 
Bl.  C.  C.  227;  The  Alhamlra,  2  Ben.  158. 

Under  the  Act  of  29th  April,  1864,  it  is  the  duty  of  a  steamer,  which, 
when  crossing  so  as  to  involve  the  risk  of  collision,  has  the  approaching 


DECISIONS  IN  ADMIRALTY.  145 

vessel  on  her  own  starboard  side,  to  keep  out  of  the  way  of  such  ap- 
proaching vessel,  and  the  duty  of  the  steamer  so  approaching  to  keep  her 
course.  The  Chesapeake,  1  Ben.  23. 

A  steam  vessel  in  a  fog  must  reduce  her  rate  of  speed  to  a  moderate 
one  or  abide  the  consequences,  unless  some  special  reason  be  shown  for 
maintaining  the  rate  adopted.  The  D.  S.  Gregory,  2  Ben.  166. 

When  a  steamer  proceeding  in  the  dark,  hears  a  hail  before  her 
from  some  source  which  she  cannot  or  does  not  see,  it  is  her  duty  instantly 
to  reverse  her  engine,  not  merely  to  "slow."  The  Hypodame,  6  Wai.  216. 

Although  it  may  be  true,  as  a  general  rule,  that  a  free  steamer 
meeting  a  tug  incumbered  by  tows  must  keep  out  of  the  way,  it  does 
not  follow  that  the  tug  can  monopolize  the  channel,  or  disregard  the  rules 
of  navigation.  Hern  v.The  Anthracite,  2  Leg.  &  Ind.  Rep.  58. 

A  ship  navigated  in  a  peculiar  manner,  which  has  the  effect  of 
incapacitating  her  for  the  time  from  moving  out  of  the  way  so  as  to  avoid 
collision,  does  so  at  her  own  risk,  and  will  be  held  answerable  for  the 
damage  done  by  a  collision  resulting  from  such  incapacity.  The  Hope, 
2  W.  Rob.  8. 

The  rule  that  all  steamers  bound  up  or  down  the  river  with  vessels 
in  tow,  should  keep  as  near  the  right  hand  shore  as  their  respective  drafts 
of  water  will  permit,  is  a  just  and  proper  one.  Hern  v.  Anthracite,  2  Leg. 
&  Ind.  Rep.  58. 

Though  a  tug  may  be  unable  to  stop  the  tow  attached  to  her,  and 
that  duty  be  cast  on  the  incumbered  boat,  yet  this  inability  will  not 
justify  the  tug  in  disregarding  the  rule  of  porting  her  helm  and  keeping 
to  the  starboard  side  of  the  river.  Hern  v.  Anthracite,  2  Leg.  &  Ind. 
Rep.  58. 

A  vessel  meeting  a  tug  and  tow  in  a  narrow  passage,  having  been 
previously  signalled  to  keep  to  the  right,  is  not  excused  from  the  conse- 
quences of  a  collision,  by  the  fact  that  she  could  not  take  the  right  of  the 
channel  without  grounding.  9.  Wai.  522. 

A  vessel  in  tow  is  not,  therefore,  excused  from  keeping  close  watch 
and  observing  and  obeying  all  signals.  Northern  Transportation  Co.  v. 
The  Maria  Martin,  1  Chic.  Leg.  News,  57. 

Inevitable  accident,  as  respects  a  colliding  vessel,  means  that  such 
vessel  has  endeavored  by  every  means  in  her  power,  with  due  care  and 
caution,  and  a  proper  display  of  nautical  skill,  to  prevent  the  collision. 
The  Baltic,  2  Ben.  452. 

Mistakes  committed  in  moments  of  impending  peril  by  a  vessel,  in 


146  LAWS  OF  TRADE. 

order  to  avoid  a  collision,  made  imminent  by  the  mismanagement  of  those 
in  charge  of  another  vessel,  do  not  give  the  latter,  if  sunk  and  lost,  a 
claim  on  the  former  for  any  damages.  The  Nichols,  7  Wai.  651. 

The  mere  fact  that  a  vessel  is  sunk  by  a  collision,  is  not  of  itself  suf- 
ficient to  show  that  the  loss  was  total,  nor  to  justify  an  abandonment. 
The  Baltimore,  8  Wai.  377. 

Where  a  vessel  at  anchor  is  struck  by  one  in  motion,  the  presumption 
of  law  is  that  the  collision  is  caused  by  the  negligence  of  the  latter,  un- 
less the  former  were  anchored  in  an  improper  place.  The  Beaver,  2  Ben. 
118. 

If  a  vessel  be  anchored  at  a  place  forbidden  by  the  regulations  of 
the  port,  she  will  be  held  to  have  contributed  to  a  collision,  and  liable  to 
a  proportion  of  the  damages.  The  JBultic,  2  Ben.  396. 

When  a  tugboat  is  injured  by  a  collision,  the  proper  inqiury  is  as  to 
what  she  could  have  been  chartered  for  per  day  in  the  business  of  towing 
(during  the  time  she  was  laid  up  for  repairs),  regard  being  had  to  the 
market  price.  The  Maybey,  4  Bl.  C.  C.  439. 

The  fact  that  the  claimant,  by  putting  repairs  on  the  libellant's- 
vessel,  suit  brought,  made  her  worth  more  than  before  the  collision,  is  no 
bar  to  a  recovery  for  demurrage  for  the  time  occupied  in  making  such 
repairs.  The  Santee,  6  Bl.  C.  C.  1. 

A  steam  tugboat  is  not  responsible  for  an  accident  to  her  tow  by 
running  upon  a  rock  not  generally  known.  The  Angelina  Corning,  1 
Ben.  109. 

COMMON  CARRIER. 

The  term  "  dangers  of  lake  navigation,"  include  the  peril  which 
arises  from  shallowness  of  the  waters  at  the  entrance  of  the  lake  harbors. 
Transportation  Co.  v.  Donner,  11  Wai.  129. 

MASTER. 

As  between  the  owners  and  the  master,  nothing  more  is  required  of 
the  latter  than  the  exercise  of  such  care,  diligence  and  skill,  as  the  duties 
of  his  position  demand.  9  Wai.  370. 

The  master  can  be  superseded  in  his  command  whilst  at  sea  only  as 
a  last  resort  in  a  case  of  the  utmost  emergency.  The  Anastasia,  I  Ben. 
166. 

The  master  cannot  bind  the  cargo  for  extraordinary  expenses  in 
towing  bis  vessel  into  port,  without  resorting  to  every  ordinary  means  of 


DECISIONS  IN  ADMIRALTY.  147 

repairing  the  damage  sustained  in  a  gale,  so  as  to  enable  her  to  reach 
port  under  sail.  Ltjon  v.  928  JBbls.  Salt,  2  Chic.  Leg.  News,  317. 

If  the  situation  of  the  master  be  such  that  he  cannot  communicate 
with  the  owners,  he  may  sell  a  portion  of  the  cargo  in  order  to  raise 
means  to  make  necessary  repairs  to  the  ship.  The  Star  of  Hope,  9  Wai. 
203. 

The  master  is  not  liable  for  injuries  to  cargo  caused  by  unloading 
and  reloading,  in  order  to  pass  a  bar;  it  is  the  duty  of  the  mate  to  see  to 
the  loading.  Nupham  v.  J3iessel,  9  Wai.  370. 

The  power  of  the  master  to  make  contracts  about  his  vessel  in  the 
home  port  of  the  owners  is  limited.  The  Tribune,  3  Sum.  144. 

The  master  cannot,  by  signing  a  false  bill  of  lading  for  cargo  not 
actually  shipped,  charge  the  vessel  or  the  owner,  who  is  not  a  party  to 
the  fraud.  The  Freeman  v.  Buckingham,  18  H.  182. 

The  master  is  clothed  with  the  power  to  decide,  from  the  facts 
before  him,  whether  a  jettison  be  necessary  for  the  common  safety. 
Laurence  v.  Minturn,  17  H.  100. 

If  the  master  act  with  reasonable  prudence,  according  to  his  best 
judgment,  he  is  not  responsible  for  the  consequences.  The  Gentlemen, 
1  Bl.  C.  C.  196. 

In  cases  of  necessity  the  master  is  the  agent  of  all  concerned,  and 
his  acts,  in  the  exercise  of  a  sound  discretion,  are  binding  on  all  parties 
in  interest.  Miston  v.  Lord,  1  Bl.  C.  C.  355. 

LIEN  FOE  FREIGHT. 

The  lien  for  freight  under  a  charter  party  attaches  as  soon  as  the 
cargo  is  put  on  board.  The  Hermitage,  4  Bl.  C.  C.  474. 

A  carrier  may,  if  he  see  fit,  deliver  a  part  of  a  particular  shipment 
without  impairing  his  right  to  hold  the  residue  for  the  freight  upon  the 
whole  consignment  from  which  the  part  so  detained  was  taken.  Sears  v. 
-Bags  of  Linseed,  1  Cliff.  68. 

The  lien  for  freight  is  inseparably  associated  with  the  possession  of 
the  goods,  and  is  lost  by  an  unconditional  delivery.  Wills  v.  Sears,  1 
Bl.  108. 

But  there  may  be  a  conditional  delivery  to  the  consignee,  with  an 
understanding  that  the  lien  for  freight  shall  not  be  affected.  Wills  v. 
Sears,  1  Bl.  108. 

Shipowners,  as  a  general  rule,  have  a  lien  upon  the  cargo  for  freight, 
but  it  may  be  modified  or  displaced  either  by  direct  words  or  by  stipula- 
tions incompatible  with  the  existence  of  such  a  right. 


148  LAWS  OF  TRADE. 

A  bill  of  exchange  or  note  given  for  a  precedent  debt,  does  not  ex- 
tinguish the  debt  unless  such  was  the  agreement  of  the  parties.  A  bill 
or  note  falling  due  before  the  unloading  of  the  cargo,  and  protested  and 
unpaid  is  no  discharge  of  the  lien;  and  the  shipowner  in  such  a  case  may 
stand  upon  it  as  fully  as  if  the  acceptance  had  never  been  given.  The 
Bird  of  Paradise,  5  Wai.  545. 

A  conditional  and  qualified  delivery  does  not  discharge  the  lien  for 
freight,  such  as  a  delivery  with  the  understanding  that  the  freight  is  to 
be  paid  when  it  is  completed.  Gaugham  v.  Tons  of  Coal,  4  Bl.  C.  C.  368. 

LIEN  FOR  WAGES. 

The  master's  agreement  in  a  foreign  port  to  raise  the  wages  of  the 
seamen,  will  not  give  them  a  lien  for  such  increase  prior  to  that  of  cred- 
itors for  advances  to  the  ship.  Sears  v.  Sags  of  Linseed,  1  Cliff.  68. 

A  claim  for  wages  after  twenty-one  months  continuous  service,  is  not 
deemed  a  stale  one  where  there  has  been  no  change  of  ownership.  Fisher 
v.  The  G.  C.  Morris,  27  Leg.  Int.  204. 

The  master  sailing  the  vessel  on  shares,  under  an  agreement  to  man 
and  victual  her  at  his  own  expense,  does  not  affect  the  seaman's  lien  for 
wages.  Fisher  v.  The  G.  C  Morris,  27  Leg.  Int.  204. 

FREIGHT. 

The  rights  of  shipowners  to  freight  depend  on  the  bills  of  lading, 
and  are  not  affected  by  the  terms  of  the  charter  party.  Wills  v.  Sears,  1 
Bl.  108. 

The  assignee  of  the  bill  of  lading  who  receives  the  goods  is  bound 
to  pay  the  freight,  except  under  special  circumstances.  Trask  v.  Di<.vall, 
4  W.  C.  C.  181. 

If  a  vessel  put  back  to  her  port  of  shipment  in  distress,  and  the  cargo 
be  there  sold  and  the  proceeds  received  by  the  shipper,  no  freight  is  due. 
Miston  v.  Lord,  1  Bl.  C.  C.  354. 

The  right  to  freight  earned  upon  the  homeward  voyage  'o  -ows  tne 
ownership  of  the  vessel.  The  Henry,  1  Bl.  &  H.  465. 

Freight  contracted  for  in  gross,  for  a  voyage  out  and  home,  cannot 
be  apportioned,  unless  under  special  circumstances.  Weston.  v.  Minot, 
3  W.  &  M.  457. 

The  crew  are  not  authorized  to  make  a  jettison  of  any  part  of  the 
cargo  in  case  of  distress  without  order  of  the  master.  The  Nimrod, 
Ware  1. 


DECISIONS  IN  ADMIRALTY.  149 

An  Outline  of  the  Evidence  of  General 

Average. 


BY  ROBERT  RAE,  Chicago  Bar. 

1.  General,  gross  or   extraordinary  average    means  a  contribution 
made  by  all  the  parties  concerned  towards  a  loss  sustained  by  some  of 
the  parties  in  interest  for  the  benefit  of  all;  and  it  is  called  general  or 
gross  average,  because  it  falls  upon  the  gross  amount  of  ship,  cargo  and 
freight. 

2.  In  the  United  States,  partial  loss  and  average  are  understood  by 
commercial  men  to  mean  the  same  thing,  and  average  other  than  general, 
includes  every  loss  for  which  the  underwriter  is  liable,  except  general 
average  and  total  loss.      Wadsworth  v.  Pacific  In.  Co.,  4  Wend.  33. 

3.  General  average  is  incurred  where  the  expenses  or  losses  arise  in 
a  case  of  emergency,  not  produced  by  the  misconduct  or  unskilfulness  of 
the  master,  and  not  resulting   from  the   ordinary  circumstances  of  the 
voyage.     Ross  v.  Ship  Active,  2  Wash.  C.  C.  226. 

4.  It  is  also  true  that  in  order  to  make  a  case  of  general  average,  it 
is  necessary  not  only  that  the  ship  should  be  in  distress  and  the  property 
endangered,  and  a  part  sacrificed  in  order  to  preserve  the  rest,  but  it  is 
necessary  also  that  this  sacrifice  should  be  voluntary. 

5.  The  property  sacrificed  for  the  benefit  of  other  property  must  be 
embarked  in  a  common  adventure.     If  A's  vessel  is  about  to  come  in 
collision  with  B's,  which  is  at  anchor,  and  B  cuts  his  cable  and  thus 
avoids  it,  he  has  no  claim  for  contribution  against  A  for  the  loss  of  the 
cable  or  anchor. — The  John  Perkins,  21  L.  Rep.  87,  97. 

G.  The  sacrifice  mu^t  be  with  the  intention  of  saving  the  remaining 
property,  and  must  be  successful.  Williams  v.  Suffolk  Ins.  Co.,  3  Sum. 
513.  Scudd  v.  Bradford,  14  Peck.  13.  McPersonv.  Tyson,  8  Mass.  467. 

7.  The   most  usual   form  of  this  voluntary   sacrifice,  which  is  the 
foundation  of  general  average,    was   a   "jettison"   of  cargo  to  lighten 
the  ship;  therefore,  if  no  possibility  of  saving  the  ship,  thereby  there  is 
no  contribution  in  nature  of  general  average.    Crockett  v.  Dodge,  3  Fairf. 
190. 

8.  Goods  laden  on  deck  of  sailing  ship  and  jettisoned,  do  not  as  a 
rule  make  a  cause  for  general  average,    Ray  v.  Milwaukee  Belle,  18  Am. 
L.  R.  311. 


150  LAWS  OF  TRADE. 

9.  But  if  there  be  a  usage  for  their  being  so  carried,  it  is  otherwise, 
and  they  make  a  case  for  general  average.  Toledo  Co.  v.  Spears,  16 
Ind.  52. 

10.  So,  if  the  goods  be  carried  on  the  deck  of  a  propeller  or  steam- 
boat.    Gillett  v.  Ellis,  11  ]J1.  579.     Harris  v.  Moody,  4  Bosw.  210. 
Confirmed  on  appeal,  30  N.  Y.  266. 

11.  The  word  "jettison"  not  only  applies  to  the  cargo,  but  also  to 
masts  and  anchors  cut  away,  or  sails  and  rigging  cast  off  to  save  the  ship 
from  wreck.      Walker  v.  U.  8.  Ins.  Co.,  11  S.  &  R.  61. 

12.  The  right  to  contribution  (general  average)  does  not  depend  on 
any  real  or  presumed  intention  to  destroy  the  thing  cast  away,  but  on  the 
fact  that  it  has  been  selected  to  suffer  alone,  and  thus  avert  the  common 
peril.     Sturgis  v.  Gary,  2  Curt.  C.  C.  59. 

13.  If  a  mast  be  broken,  and  for  the  safety  of  the  ship  it  be  found 
necessary  to  complete  the  fracture  and  ca«t  the  mast  with  sails  and  rig- 
ging into  the  sea,  this  would  form  a  case  of  general  average,  the  amount 
of  loss  to  be  estimated  at  the  value  of  the  mast  at  the  time  it  was  cut 
away,  not  the  price  which  a  new  mast  would  cost.     Teetsman  v.  Clama- 
geran,  2  La.  195. 

14.  Where  cargo  is  exposed  by  shipping  in  lighters  or  otherwise  for 
the  general  benefit,  and  damaged,  the  loss  is  a  subject  of  general  average, 
as  the  damage  was  a  direct  consequence  of  such  exposure.     Lewis  \. 
Williams,  1  Hall,  430,  451. 

15.  The  same  rule  is  applicable  when  masts  are  cut  away  for  general 
preservation  of  vessel,  and  corn  was  thereby  damaged  by  water,  the  cut- 
ting away  being  the  indirect  cause  of  damage.     Cagrath  v.  Church,  1 
Carnes,  196. 

WHAT    EXPENSES    COME    INTO    GENERAL    AVERAGE. 

Expenses  of  entering  or  quitting  a  port  of  distress  to  refit,  and  of 
discharging  and  reloading  cargo  there,  including  warehouse  rent,  pilotage, 
towage,  port  charges,  etc.,  as  also  accidental  damage  done  to  cargo  in. 
consequence  of  unloading. 

Wages  and  provisions  of  master  and  mariners  from  time  vessel  bears 
away  from  course  of  her  voyage  to  a  port  of  refuge,  to  the  time  she  is 
again  ready  for  sea. 

Disbursements  made  for  the  common  benefit,  whether  the  ship  and 
cargo  be  eventually  saved  or  not.  Stafford  v.  Dodge,  14  Mass.  06. 


DECISIONS  IN  ADMIRALTY.  151 

Expenses  of  detention  while  frozen  up  in  a  port  put  into  by  the 
master  voluntarily  for  repairs. 

Ransom  paid  to  a  captor  whether  piratical  or  belligerent  for  the 
benefit  of  all  concerned.  Douglas  v.  Moody,  9  Mass.  548.  Lawson  v 
Hall,  4  Dall.  459. 

Expenses  of  delay  and  making  claim  for  vessel  and  cargo  in  case  of 
capture.  Speyer  v.  New  York  Ins.  Co.,  3  Johns,  88.  Dorr  v.  Union. 
Ins.  Co.,  8  Mass,  R.  494. 

Salvage  in  case  of  capture.  Williams  v.  Suffolk  Ins  Co.,  3  Sum 
ner's  R.,  270  and  510. 

Expenses  of  remunerating  salvage  services  rendered  for  the  common 
safety  in  case  of  shipwreck. 

Commissions  and  interest  on  advances  for  general  average  purposes. 

Commissions  collecting  general  average.  Barnard  v.  Adams,  10 
Howard,  270. 

Expenses  of  surveys  and  of  discharging  cargo,  either  to  cool  it,  or 
in  order  to  extricate  ship  from  perilous  situation — as  to  float  a  stranded 
ship.  This  includes  the  hire  of  lighters  in  some  cases  to  avoid  landing 
cargo  when  impracticable. 

Expenses  incurred  to  restore  cargo  when  shifted  by  perils  of  the  sea- 
Expenses  of  unloading  part  of  cargo  for  purpose  of  ship  getting 
into  port  of  destination,  owing  to  some  iinusual  and  unforeseen  obstruc. 
tion. 

Temporary  repairs  to  ship  made  at  an  intermediate  port,  for  the 
purpose  of  prosecuting  the  voyage  and  of  no  peculiar  benefit  to  ship- 
owner. 

Ship's  provisions  consumed  by  workmen  from  the  shore  employed  in 
repairing,  and  by  wreckers. 

Expenses  landing  cargo  when  vessel  goes  into  a  port  of  refuge,  so 
long  as  to  be  under  the  control  of  the  master,  and  the  voyage  be  not 
abandoned.  Nelson  v.  Belmont,  5  Duer.  310. 

Expenses  of  shipping  or  hiring  an  anchor  and  chain  after  a  chain 
has  parted,  or  the  costs  of  an  unsuitable  anchor  and  chain  supplied  under 
lifce  circumstances. 

Freight  lost  by  jettison  of  goods.  Nelson  v.  Belmont,  5  Duer. 
310-322. 

CONTRIBUTING    INTERESTS. 

The  value  of  the  ship  for  contribution  is  her  worth  to  her  owners  in 
the  state  in  which  she  arrives. 


152  LAWS  OF  TRADE. 

In  case  of  voluntary  stranding,  the  measure  of  loss  is  the  value  at 
the  time  when  the  ship  was  run  aground. 

The  value  of  the  cargo  for  contribution  is  what  it  has  produced  or 
would  produce  at,  as  nearly  as  possible,  the  time  of  its  arrival,  stripped 
of  freight  duty  and  landing  charges,  the  portion  of  the  cargo  jettisoned 
to  be  estimated  in  like  manner,  and  added  to  net  value  of  cargo  saved. 

All  property  on  board  vessel  at  time  of  jettison  and  saved,  unless 
attached  to  person  of  passengers,  is  to  be  brought  into  contribution. 
Harris  v.  Moody,  3  New  York  Reps. 

The  value  of  freight  for  contribution  is  the  net  freight  on  the  goods 
saved  and  carried,  deducting  crew's  wages,  port  charges,  etc. 

ADJUSTMENT. 

The  proper  time  and  place  for  adjusting  a  general  average  loss  is  on 
the  arrival  of  the  ship  at  her  port  of  destination. 


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it.  ONE  MILLION  POUNDS  SOLD  IN  1877. 

Roast  Coffee  received  fresh  from  New  York  daily. 

We  offer  no  goods  to  the  public  that  we  do  not  either  Import  or 
Manufacture — and  as  our  firm  has  been  known  for  the  past  38  years  in 
the  Eastern  Markets,  as  square  dealers,  and  at  all  times  furnishing  a 
superior  article  at  low  prices.  We  respectfully  solicit  the  patronage  of 
the  trade  of  the  Northwest. 

WRIGHT  GILLIES  &  BRO. 

E.   D.    WILDER,  Manager,  151  South  Water  Street,  Chicago. 


INSURANCE. 


MOORE  &  JANES, 

AO-ENTS. 

119  &  121  La  Salle  Street,  Chicago. 


Representing  the  following  well  known  and  Responsible 

Companies  : 

HARTFORD  FIRE  INSURANCE  CO.,  HARTFORD,  CONN., 

ASSETS  OVER  $3,000,000. 

EQUITABLE  INSURANCE  CO.,  NASHVILLE,  TENN. 
ASSETS  OVER  $300,000. 

GERMAN-AMERICAN  INSURANCE  CO.,  NEW  YORK, 
ASSETS  OVER  $2,000,000. 

NATIONAL  FIRE  INSURANCE  CO.,  HARTFORD,  CONN., 
ASSETS  OVER  11,000,000. 

IRVING  INSURANCE  CO.,  NEW  YORK, 
ASSETS  OVER  $300,000. 

ST.  PAUL  FIRE  &  MARINE  INS.  CO.,  ST.  PAUL,  MINN. 

ASSETS  OVER  $800,000. 

NORTH  BRITISH  &  MERCANTILE  INSURANCE  CO., 

LONDON  AND  EDINBURGH, 
ASSETS  OVER  $13,000,000. 

HAMBURG-MAGDEBURG  INS.  CO.,  HAMBURG,  GERMANY, 
ASSETS  OVER  -  $700,000. 


Total  Assets  Represented  by  us  over  $20,000,000. 

MOORE    &    JANES,    Agents. 


